Janardhan Nellore, et al.
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25796 / August 2, 2023
Securities and Exchange Commission v. Janardhan Nellore, et al., Civ. Action No. 19-CV-08207-RS (N.D. Cal. filed Dec. 17, 2019)
SEC Obtains Final Judgment Against Silicon Valley IT Administrator at the Center of Multimillion Dollar Insider Trading Ring
On August 1, 2023, the United States District Court for the Northern District of California entered a final judgment, by consent, against Janardhan Nellore. The Securities and Exchange Commission sued Nellore, a former IT administrator at Palo Alto Networks, Inc., alleging that he traded on confidential earnings information about Palo Alto Networks and tipped four of his friends to do the same, in violation of the federal securities laws. In settling the charges against him, Nellore agreed to pay $16,614 in disgorgement and prejudgment interest, and to be permanently enjoined from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
The SEC’s complaint, filed on December 17, 2019, alleges that Nellore was at the center of an insider trading ring and used his IT credentials and work contacts to obtain highly confidential information about his employer’s quarterly earnings and financial performance. As alleged in the complaint, Nellore and his friends achieved more than $7 million in illegal profits. Three of Nellore’s co-defendants previously settled the SEC’s action against them. The SEC’s action against the final co-defendant, Sivannarayana Barama, is continuing.
Last Reviewed or Updated: Aug. 23, 2023