An executive at a U.S. medical device company is facing insider trading charges, amid allegations that he shorted his company after learning that its quarterly results were going to be disappointing.
In an indictment filed in federal court in the Southern District of New York (SDNY), U.S. authorities charged David Pidgeon, an executive with Treace Medical Concepts, Inc., with two counts of securities fraud.
According to the indictment, in October 2025, in the days leading up to the release of the company’s third-quarter results, Pidgeon bought short-term put options on TMCI stock after learning that its sales were weak in the quarter, and that the company would fall short of its financial projections.
When the company announced its results on Nov. 6, which included a quarterly net loss and lower revenue guidance, the company’s stock dropped 28% — and U.S. authorities allege that Pidgeon cashed in his options, generating illicit trading profits.
The allegations have not been proven, and he is presumed to be innocent.