SEC Fines Arista Co-Founder $1 Million Over Insider Trading Claims
Wall Street regulator alleges Andy Bechtolsheim profitably traded on confidential information about an impending deal for Acacia Communications
The U.S. Securities and Exchange Commission said Andy Bechtolsheim, the co-founder of Sun Microsystems and Arista Networks ANET -1.25%decrease; red down pointing triangle, has agreed to pay almost $1 million to resolve claims that he committed insider trading.
The Wall Street regulator alleged Tuesday that while he was serving as chair of Arista in July 2019, Bechtolsheim learned about an impending acquisition of Acacia Communications and profitably traded on that confidential information before Cisco announced that it would buy Acacia at $70 a share.
Without admitting or denying the allegations, Bechtolsheim agreed to resolve the SEC’s claims with a $923,740 fine and a bar from serving as an officer or director of a public company for five years. The settlement remains subject to court approval.
Bechtolsheim stepped down from the board of Arista in December and has served in the role of chief architect since.