Litigation Releases (Barry Siegel)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26123 / September 24, 2024

Securities and Exchange Commission v.

Barry Siegel,

No. 1:24-CV-7210 (S.D.N.Y. filed September 24, 2024)

SEC Charges Former Foot Locker Employee with Insider Trading

The Securities and Exchange Commission charged New York resident Barry Siegel with insider trading ahead of two earnings announcements by Foot Locker, Inc.

According to the SEC'scomplaint, Siegel had access to material nonpublic sales and inventory data in his role as Senior Director of Order Planning Management, North America at Foot Locker. The SEC alleges while in that role, Siegel shorted Foot Locker stock in advance of the company's first quarter 2023 earnings announcement in May 2023. The SEC further alleges that, after the announcement, Foot Locker's stock price fell by 27.24%, and Siegel covered his short position for a $82,736.06 profit. The complaint further alleges, in early August 2023, about a week after being laid off from his job at Foot Locker, Siegel sold short Foot Locker stock again, this time in advance of the company's announcement of its second quarter 2023 earnings. According to the complaint, after that announcement, the stock price fell by 28.28% and Siegel covered his short position for a $30,132.89 profit. The SEC further alleges that before each of his trades, Siegel was in possession of material nonpublic information concerning Foot Locker's operating results, including negative sales and inventory figures, and that he traded based on that information despite being subject to Foot Locker's Policy Prohibiting Insider Trading.

The SEC's complaint, filed in U.S. District Court for the Southern District of New York, charges Siegel with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations, Siegel consented to a judgment, subject to court approval, permanently enjoining him from future violations of the charged provisions; ordering him to pay disgorgement of $112,868.95 plus prejudgment interest of $9,975.97; imposing a civil monetary penalty of $112,868.95; and barring him from acting or serving as an officer or director of a public company.

The SEC's investigation was conducted by Jeremy Brandt, Wes Wintermyer, Matthew Lambert, and Lauren Sheridan of the SEC's New York Regional Office, and was supervised by Celeste Chase and Sheldon Pollock.