SEC Settles Insider Trading Charges Involving Announcement of Covid-19 Vaccine Production

ADMINISTRATIVE PROCEEDING
File No. 3-21418

May 12, 2023 - The Securities and Exchange Commission today announced that Todd Dobberfuhl of Sun Prairie, Wisconsin has agreed to settle charges for insider trading in the securities of biotech company Vaxart, Inc. ("Vaxart") before the June 25, 2020 announcement (the "Announcement") that Vaxart and Attwill Medical Solutions Steriflow, LP ("Attwill") had signed a Memorandum of Understanding ("MOU") affirming the parties' intent for Vaxart to use Attwill's facilities for large scale manufacturing and processing of an oral COVID-19 vaccine candidate being developed by Vaxart.

According to the SEC's order, Dobberfuhl, who was an employee of Attwill during the relevant period, obtained material nonpublic information about the MOU through his work at Attwill. The SEC's order finds that on June 18, 2020, while in possession and on the basis of this material nonpublic information, Dobberfuhl purchased Vaxart stock in violation of his duties to Attwill. When Vaxart's stock price rose by approximately 96% following the Announcement, Dobberfuhl obtained ill-gotten gains of more than $72,000.

The SEC's order further finds that Dobberfuhl violated the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the SEC's findings, Dobberfuhl consented to a cease-and-desist order and agreed to pay disgorgement of $72,827.69, prejudgment interest of $7,739.25, and a civil penalty of $72,827.69.

The SEC's investigation was conducted by Ann Marie Preissler, John Rymas, and Lindsay Moilanen of the Enforcement Division's Market Abuse Unit, and by Melissa Coppola of the New York Regional Office. This case has been supervised by Market Abuse Unit Chief Joseph G. Sansone. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.