The government said Martoma got confidential information about a clinical trial on an experimental Alzheimer’s drug from a doctor to whom the trader had previously paid more than $70,000 in consulting fees.
Martoma’s “corrupt quid pro quo arrangement fell within the heartland” of prohibitions in the federal securities laws, the administration argued.
The case is Martoma v. United States, 18-972.
With assistance from Chris Dolmetsch.