EI Senior Vice President Jeffry Davis’s testimony assists SEC in successful insider trading suit.

Senior Vice President Jeffry Davis testified on behalf of the plaintiff in Securities and Exchange Commission v. Steven E. Nothern in the District Court for the District of Massachusetts. The suit alleged that Mr. Nothern, a mutual fund manager for Massachusetts Financial Services Company (MFS), had been tipped that the U.S. Treasury Department had decided to discontinue issuance of the 30-year Treasury bond. Before the news was made public, Mr. Nothern and other MFS fund managers purchased $65 million of 30-year bonds, which generated profits of approximately $3.1 million. Mr. Davis’s testimony demonstrated that the information about the discontinuance of the 30-year bond had not been impounded in the price of the bond prior to the bond purchases by Mr. Nothern and the other MFS fund managers. The jury ruled in favor of the Securities and Exchange Commission.