Cardiovascular Systems Confirms U.S. Information RequestChristie Smythe
Cardiovascular Systems Inc., a medical-device maker that a news report said is part of a probe of corporate insider investment vehicles, said it got requests for information from the U.S. government and is complying.
The vehicles, known as 10b5-1 plans, let corporate insiders with access to nonpublic information trade in securities under predetermined arrangements. CSI said in a statement that it’s “readily providing” information requested by the government.
“We have nothing to hide,” said Dave Folkens, a spokesman for the St. Paul, Minnesota-based company. CSI isn’t “the target” of an investigation and has corporate governance procedures in place to prevent insider trading, he said in a statement.
The Wall Street Journal, citing a source it didn’t identify, said subpoenas were issued by federal prosecutors in New York. There have been no allegations of wrongdoing in connection with the probe, according to the newspaper.
Robert Nardoza, a spokesman for Brooklyn U.S. Attorney Loretta Lynch, and Ellen Davis, a spokeswoman for Manhattan U.S. Attorney Preet Bharara, declined to comment on the report.
Other companies receiving subpoenas included Tesla Motors Inc. and investment firms Valor Equity Partners LP and ABS Capital Partners, according to the Journal.
Antonio J. Gracias, Valor’s chief executive officer, sits on the board of Tesla, the luxury battery-car company run by billionaire Elon Musk.
Shanna Hendriks, a spokeswoman for Palo Alto, California-based Tesla, declined to comment on the report. A spokeswoman for ABS, Stephanie Carter, didn’t immediately return a call for comment.
Valor’s “success over many years has been built upon an unwavering commitment to compliance with the letter and spirit of the law,” the company said in a statement.
“Valor believes its sales activities in Tesla stock under its 10b5-1 plans were in full compliance with applicable laws and regulations,” according to the statement.
A spokesman for Valor declined to comment on whether the investment firm had received a subpoena.