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Federal Securities regulators have settled insider trading charges against a Lexington man, David J. Cancian, involving his alleged profit-taking on American Superconductor Corp., shares, ahead of news that sent the company’s 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 and selling options to protect any losses on the shares he kept.
The SEC said Cancian reaped profits, and avoided losses, of over $46,930. He has agreed to pay a sum double that amount, which includes a penalty, to settle the case. He did not admit or deny the allegations.