Cheryl Kramer had some kind of a relationship with a senior employee of Sage Therapeutics. That friend received the news at work that the FDA was making a material limitation on one of its drugs. That news was very bad news. The friend told Ms. Kramer. Ms. Kramer sold the Sage stock that she had.
Great job rooting out illegal trading activity. Great job by the SEC getting this settled before the end of the fiscal year and adding to its totals. The case adds to the SEC’s yearly total of fines and recoveries by adding $11,140.
Based on the rough math in the complaint, that’s about 500 to 600 shares of Sage. The trades happened two months before adverse announcement. How did that trade that was so small and so far away from the event even get flagged?
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