The Securities and Exchange Commission (SEC) has indicted three former insider trading platform Netflix employees. Together with two other suspects, they would have made $3 million in profits.
According to the SEC, between 2016 and 2019, the three engineers passed undisclosed Netflix subscriber numbers — an important measure for investors of a company’s performance — to a brother and friend of one of them, who used the information for insider trading in stocks from the streaming platform. He also accused the engineer “at the heart of the long-term plan” of acting on the information of his former colleagues after leaving Netflix in 2017.
The SEC said those involved in the insider trading collectively made nearly $3 million (€2.6 million). The regulator found it on the basis of data analysis that indicated “unlikely successful trading over a longer period of time”.
The SEC is now suing the five in federal court in Seattle, Washington, for fraud, for which they are facing administrative fines. In addition, the Washington attorney general also launched a criminal investigation.