You can now read 5 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

SEC settles another insider trading case

Federal securities regulators have settled insider trading charges against a Lexington man, David J. Cancian, who allegedly profited on American Superconductor Corp. shares ahead of news that sent the stock plunging 42 percent in 2011.

The Securities and Exchange Commission alleged that Cancian learned of the company’s looming trouble while having drinks with a friend who was a senior executive at American Superconductor. Cancian made a trade on April 4, the first trading day after the meeting, selling most of his stock in the Devens-based company. He also sold options to protect any losses on the shares he retained.

Continue reading below

The SEC said Cancian reaped profits, and avoided losses, of over $46,930. According to the agency’s complaint, filed in federal court in Boston, Cancian will repay those funds, plus a civil fine of an equal amount, for a total of $97,843.

Cancian, 51, agreed to settle the case without admitting or denying the allegations. His lawyer declined to comment.

The SEC did not name the insider who gave Cancian the information. Regulators said the investigation is ongoing. Last summer, a former American Superconductor executive pleaded guilty to criminal securities fraud in a related case and paid $170,000 to settle separate civil charges of insider trading.

This is the latest case brought following allegations of stolen intellectual property that have embroiled American Superconductor for three years. In 2011, the company sued China’s Sinovel Wind Group Ltd. for alleged copyright infringement and for stealing parts of its wind turbine control software.

On April 5, 2011, after the close of trading, American Superconductor announced that its financial results for its fourth quarter and fiscal year ended March 31, 2011, would be lower than expected due to the deteriorating relationship with Sinovel, its primary customer.

Beth Healy can be reached at beth.healy@globe.com. Follow her on Twitter @HealyBeth.
Loading comments...
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.