02:22 PM EDT, 09/27/2024 (MT Newswires) -- Chewy's (CHWY) former executive Austin Kauh has agreed to settle insider trading charges brought by the US Securities and Exchange Commission, according to an administrative proceedings document.

Kauh traded in Trupanion ( TRUP ) shares before the December 2021 announcement that Kauh's employer, Chewy, had formed a strategic partnership with Trupanion ( TRUP ) to provide exclusive pet health insurance and wellness plans to over 20 million Chewy customers, the document said.

Kauh was part of Chewy's due diligence team in the months leading up to the collaboration and, in this role, he obtained material nonpublic information, or MNPI, about the deal negotiations.

"On Aug. 25, 2021, in violation of his duties to Chewy, Kauh purchased Trupanion ( TRUP ) stock in his personal account, while in possession and on the basis of this MNPI. Furthermore, from June 10, 2021, to Aug. 25, 2021, Kauh purchased Trupanion ( TRUP ) stock in the account of a relative that Kauh controlled," the document said.

After Trupanion's ( TRUP ) stock price increased by about 39% following the announcement, Kauh made illegal profits of $4,344 in his personal account and $12,093 in his controlled account, it added.

Chewy and Trupanion ( TRUP ) did not immediately reply to MT Newswires' requests for comment.

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