Silicon Valley Friends Settle $7 Million SEC Insider Scheme Suit

Three friends will pay around $837,000 combined to end SEC allegations of participating in a $7 million scheme to trade on inside tips about a Silicon Valley-based company, according to federal court filings in California.

Ganapathi Kunadharaju, Saber Hussain, and Prasad Malempati allegedly received tips from a fourth friend, Janardhan Nellore, ahead of Palo Alto Networks Inc.'s financial results announcements as part of a scheme that lasted at least three years, the Securities and Exchange Commission said in the U.S. District Court for the Northern District of California.

Kunadharaju agreed to pay more than $522,000 as a civil fine. Hussain ...