The U.S. Securities and Exchange Commission (SEC) has issued a final judgement in the case charging Andreas "Andy" Bechtolsheim, founder and chief architect of Arista Networks, with insider trading.

The SEC's complaint, filed on 26 March 2024, alleges that Bechtolsheim, then Chairman of Arista Networks, unlawfully traded in Acacia options on 8 July 2019, after learning through his and Arista Networks' longstanding relationship with another multinational tech company that Acacia was to be acquired which was also considering acquiring Acacia.

Upon learning of this news, Bechtolsheim immediately traded Acacia options in the accounts of a close relative and a colleague. The next day, 9 July 2019, before the market opened, Acacia and Cisco announced that Cisco had agreed to acquire Acacia.

According to the SEC's allegations, Bechtolsheim's trades made a combined illegal profit of $415,726 in the accounts of his relatives and associates.

Without admitting or denying the allegations in the SEC's indictment, Bechtolsheim consented to the entry of a judgement enjoining him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, prohibiting him from serving as an officer or director of a public company for a period of five years, and ordering him to pay a civil penalty of $923,740.