Investor sues Sen. Richard Burr over stock sales ahead of coronavirus pandemic.
Thomas P. O’Brien, a former federal prosecutor who filed the lawsuit on behalf of an investor named Alan D. Jacobson, said the civil case offers one potential remedy for investors who believe the senator gained an unfair advantage in knowing to sell the stock before it lost almost two-thirds of its market value.
O’Brien said he believes the U.S. Securities and Exchange Commission should investigate to determine whether Burr ran afoul of the STOCK Act, a law passed in 2012 that specifically precludes lawmakers from using their access to confidential or secret information to guide their investing. Burr was one of two senators who voted against the legislation. The lawsuit alleges Burr violated the STOCK Act.
In this file photo taken on Jan. 21, 2020, Sen. Richard Burr, R-N.C., arrives for the Senate impeachment trial of President Donald Trump at the Capitol in Washington, D.C.Burr has disputed those allegations. He issued a statement on Twitter saying he did not use inside information to make his investment decisions, but elected to sell his holdings after he"closely followed CNBC’s daily health and science reporting out of its Asia bureaus at the time.
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