Paul Hastings Represents STEC Founder Manouch Moshayedi in Victory Over SEC in Insider Trading and Fraud Trial
June 09, 2014
Los Angeles – On Friday, June 6, 2014, a trial team led by Paul Hastings partner Thomas A. Zaccaro, and Latham & Watkins partner Patrick E. Gibbs, won a major trial victory on behalf of the founder and former CEO of sTec, Inc., Manouch Moshayedi, in one of the largest insider trading cases ever brought by the U.S. Securities and Exchange Commission. After an eleven-day trial, the Santa Ana federal court jury deliberated for just four hours before delivering a verdict in Mr. Moshayedi’s favor on all of the SEC’s claims.
Filed in 2012, the complaint alleged that Mr. Moshayedi unjustly enriched himself by $267 million in August 2009 when he and family members sold nine million shares of sTec in a secondary offering while in possession of material, non-public information. The SEC also alleged that Mr. Moshayedi made material misrepresentations and omissions on two separate occasions. All of the SEC’s claims were rejected by the jury.
Mr. Zaccaro is the vice-chair of Paul Hastings Investigations and White Collar Defense practice. The Paul Hastings team also included Los Angeles partner Howard Privette, and associates Scott Carlton, Eleanor Mercado, Peter Brejcha, Beth Mueller, Janice Lee, Bridget Gordon and Ryan Walsh.
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