A former Pfizer Inc. statistician has been sentenced to nine months in prison for making over $200,000 by trading on confidential information related to the company’s Covid-19 treatment, Paxlovid.
Amit Dagar, who was convicted of securities fraud and conspiracy after a one-week trial in January, was sentenced on Tuesday by US District Judge Andrew L. Carter Jr. in Manhattan. Dagar, 45, of Hillsborough, New Jersey, was charged with trading based on non-public details before Pfizer announced in November 2021 that Paxlovid had reduced hospitalizations and deaths by 89% in high-risk patients. This announcement significantly boosted Pfizer’s stock price.
Prosecutors revealed that Dagar, who was a senior statistical program lead for the Paxlovid trial, learned about the positive trial outcome and the upcoming press release. He purchased short-dated call options in Pfizer stock and informed a friend, who also bought similar options and shared the tip with another acquaintance. The friend has already pleaded guilty to securities fraud and received a three-year probation sentence.
Initially, Judge Carter planned to impose a sentence of one to 18 months but reduced it to nine months considering Dagar’s lack of prior criminal history, personal circumstances, and potential deportation to India. Dagar was also ordered to pay nearly $273,000 in restitution.
Dagar’s defense argued that he made a hasty trading decision without soliciting the confidential information, and he expressed deep remorse, pleading to remain with his family.
The case, US v. Dagar, 23-cr-319, is being handled by the US District Court for the Southern District of New York (Manhattan).
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