Ariad Pharmaceuticals, Inc. (Ariad), is a small Cambridge-based pharmaceutical company whose shares are traded on the Nasdaq exchange.

Maureen Curran joined Ariad in 2006 and eventually became the company’s “head of pharmacovigilance and risk management.” During the time in question, Ariad was developing a new drug called Iclusig to treat chronic myeloid leukemia. Curran oversaw the collection and disclosure of data regarding Iclusig’s safety and side effects as the drug underwent clinical testing. Because of Curran’s role in the company, she became privy to confidential information regarding Iclusig’s viability as a marketable drug. As a result, both she and her spouse, Dr.

Harold Altvater, fell under Ariad’s insider trading policy.

Altvater had a history of trading in Ariad stock through his private brokerage accounts, but, according to Curran, in September or October of 2013, she told Altvater to cease trading in Ariad stock because of a company-imposed blackout period. Despite this warning, over the next several months Altvater made three series of trades in Ariad stock that took place just before the public disclosure of information concerning the US Food and Drug Administration’s assessment of Iclusig and that drug’s path toward continued use. Altvater sat for a deposition with the US Securities and Exchange Commission on July 28, 2016, during which he answered questions regarding what information about Ariad he had learned from Curran and whether that information influenced his decisions to trade in Ariad stock.

Later, Altvater was charged and convicted of securities fraud. Altvater appealed his conviction. Do you think Altvater has a strong appeal?

Should Curran have any liability as a potential tippee?