On October 21, 2024, the Securities and Exchange Commission (SEC) charged Matthew Groom, an IT consultant, with insider trading involving Spero Therapeutics, Inc. Groom allegedly used confidential information to avoid financial losses ahead of a significant corporate announcement.
The SEC's complaint states that Groom learned of Spero's plans to suspend commercialization of Tebipenem Hbr and undertake a workforce reduction on March 30, 2022. Just 21 minutes after this call, Groom allegedly sold all his Spero Therapeutics shares.
By selling his shares, Groom avoided a loss of approximately $13,000 before Spero publicly announced the negative study results and commercialization halt on May 3, 2022, which caused the company's stock price to plummet by 64%. Groom has agreed to settle the charges, paying approximately $28,000 in disgorgement, prejudgment interest, and a civil penalty.
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