Mr Michael John Story, of Elwood, Victoria, a general manager employed by Sigma Healthcare Limited (Sigma), has been charged with two counts of insider trading.

Sigma is a wholesale and distribution pharmaceutical business servicing pharmacies and hospitals throughout Australia and during 2018 was the main supplier to the Chemist Warehouse Group (CWG).

On 2 July 2018, Sigma publicly announced that the wholesale supply agreement between Sigma and CWG would cease on 30 June 2019. Following the announcement, Sigma shares closed 40% lower compared to the previous day. Mr Story disposed of 645,047 Sigma shares on 9 May 2018 and a further 250,000 Sigma shares on 21 June 2018.

ASIC alleges that, at the time he disposed of the two tranches of Sigma shares, Mr Story was in possession of inside information relating to the status of negotiations to renew the wholesale supply agreement between Sigma and CWG.

At the time of the alleged offences, each of the charges of insider trading contrary to section 1043A of the Corporations Act 2001 carried a maximum penalty of 10 years’ imprisonment.

In March 2019 the maximum penalty for insider trading was increased to 15 years imprisonment.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.

The matter has been adjourned to a committal mention hearing in the Melbourne Magistrates Court on 18 December 2020 at 10am.

Editor's note 1:

At a committal mention on 18 December 2020, the matter was adjourned for a further committal mention on 2 February 2021.

Editor's note 2: 

Following a hearing at the Melbourne Magistrates Court on 2 February 2021, the matter was set down for a committal hearing to commence on Monday 25 October 2021, for five days.

Editor's note 3:

On 29 October 2021, after a committal hearing before the Melbourne Magistrates Court, Mr Story was committed to stand trial on two counts of insider trading. Following committal, Mr Story entered a plea of not guilty to both counts. Mr Story’s trial will be heard before the County Court on a date to be fixed. The matter has been listed in the County Court for a first directions hearing on 29 November 2021.

Editor's note 4:

The matter has been adjourned to 2 February 2022.

Editor's note 5:

The directions hearing on 2 February 2022 was vacated and the matter has been listed for a directions hearing on 21 March 2022 at 9am.

Editor's note 6:

The directions hearing listed for 21 March 2022 was vacated and the matter has been re-listed for a directions hearing on 6 April 2022.

Editor's note 7:

On 6 April 2022, the matter was adjourned until 6 May 2022. 

Editor's note 8:

The directions hearing listed for 6 May 2022 was vacated and the matter has been re-listed for a sentence indication hearing on 21 June 2022.

Editor's note 9:

On 21 June 2022, Mr Story entered a guilty plea to one count of insider trading and will be sentenced in the County Court of Victoria at 10am on Monday 27 June 2022.