SEC Charges Pharmaceutical Co. Chief Information Officer in $8 Million Insider Trading Scheme

The Securities and Exchange Commission today announced insider trading charges against Ramkumar Rayapureddy, Chief Information Officer of pharmaceutical company Viatris Inc., which was formerly known as Mylan N.V. The SEC’s complaint, filed in the United States District Court for the Western District of Pennsylvania, alleges that, from at least September 2017 through July 2019, Rayapureddy, a resident of Pennsylvania, tipped his friend and former colleague, Dayakar Mallu, material nonpublic information about Mylan’s unannounced drug approval by the U.S. Food & Drug Administration, financial results, and an impending merger with a division of Pfizer Inc. The complaint further alleges that Mallu generated gains totaling nearly $8 million and avoided losses by trading Mylan securities based upon Rayapureddy’s tips and shared a portion of his profits with Rayapureddy through cash payments in India.