Ex-Ipsen Executive Lands Two-Month Sentence for Insider Trading

Dishant Gupta, a former Ipsen executive, received a two-month prison sentence for using insider knowledge to profit from his company's acquisition of Epizyme. Despite prosecutors seeking a longer sentence, Gupta will also pay a $20,000 fine and forfeit illegal gains. The case highlighted corporate trust issues.

Dishant Gupta, a former executive at the French pharmaceutical company Ipsen, received a two-month prison sentence on Thursday. He was convicted of insider trading after learning about Ipsen's plans to acquire cancer drug developer Epizyme in 2022.

Prosecutors, seeking a year-long sentence, stated that Gupta's insider trading garnered him over $260,000. Despite these claims, Gupta's defense successfully negotiated a reduced sentence, citing his complex personal circumstances. In addition to prison time, Gupta will pay a $20,000 fine and forfeit $260,000 in illegal gains.

The case unfolded when Gupta was asked to prepare materials for a potential acquisition at a Cambridge, Massachusetts meeting. After discovering Epizyme was the target, Gupta purchased shares in his wife's brokerage account, capitalizing on insider knowledge. Ipsen's acquisition of Epizyme was finalized in June 2022, resulting in Gupta's substantial profit.

(With inputs from agencies.)