SEC v. David M. Mahan (insider trading, 2020)

Judgment entered

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In March 2020 the SEC announced that Rite Aid employee David Mahan consented to a judgment over selling his Rite Aid holdings after learning the Walgreens merger would likely miss its closing date. He agreed to pay disgorgement of $87,277, interest of $12,107 and a penalty of $87,277.

The record

What was ordered

Civil penalty

$87.3k

Disgorgement

$87.3k

Prejudgment interest

$12.1k

Total relief

$187k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced the matter on March 26, 2020 as litigation release 24782; the complaint was filed that day in the Middle District of Pennsylvania.

The complaint alleges Mahan learned through his job on January 18, 2017 that the Rite Aid and Walgreens merger would likely not close by its expected date, sold all his stock and options the next morning, and avoided a loss of over $87,000 when the FTC's concerns were reported.

Without admitting or denying the allegations, Mahan consented to an injunction and to the payments above. The earlier record omitted the civil penalty.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Insider trading — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2020-03-26 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.