The U.S. Securities and Exchange Commission (SEC) has filed insider trading charges against Andre Wong, alleging that he illegally traded securities of NeoPhotonics Corporation prior to the announcement by his former employer, Lumentum Holdings Inc., of an agreement to acquire NeoPhotonics.

According to the SEC's complaint filed in the U.S. District Court for the Southern District of New York, Wong learned material non-public information about Lumentum's plan to acquire NeoPhotonics from a colleague at Lumentum.

Based on this information, Wong purchased 10,000 shares of NeoPhotonics stock before Lumentum announced the acquisition, making an illegal profit of approximately $62,000.

This case originated from the SEC’s Market Abuse Unit’s Analysis and Detection Center, which utilizes data analytics tools to detect suspicious trading patterns.

The SEC's complaint charges Wong with violating the anti-fraud provisions of Section 10(b) of the Securities Exchange Act of 1934 [15 U.S.C. § 78j(b)] and Rule 10b-5 [17 C.F.R. § 240.10b-5] thereunder, and seeks permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties.