A former executive at Chewy (NYSE:CHWY) has agreed to pay $35,275 to settle insider trading charges filed by the U.S. Securities and Exchange Commission (SEC).
The charges stem from 2021, when the executive, Austin Kauh, allegedly engaged in insider trading related to confidential information.
Kauh, who served as Chewy's Director of Treasury at the time, reportedly obtained material nonpublic information regarding partnership negotiations between Chewy and Trupanion, a pet insurance provider.
According to the SEC, Kauh used this privileged information to purchase shares of Trupanion during the negotiation period.
After the partnership was publicly announced, Kauh realized a profit of $16,437 through these trades, executed across two separate accounts.
The settlement, announced on Friday, includes the repayment of his illicit gains along with additional penalties.
The SEC continues to emphasize its commitment to enforcing regulations against insider trading to maintain fair and transparent financial markets.