Ex-Executive Loses Bid to Undo SEC’s ‘Shadow Trading’ Verdict

A former biotechnology executive failed to convince a federal judge Monday that he’s entitled to a new trial or judgment in his favor on insider trading claims following a jury verdict for the SEC in April.

The closely watched civil trial in federal court in California was the regulator’s first enforcement action targeting so-called shadow trading, in which a company insider uses nonpublic information to trade in a competitor’s stock.

Former Medivation Inc. executive Matthew Panuwat received a fair trial and doesn’t have the law on his side, Judge William Orrick said for the US District Court for the Northern ...