The Securities and Exchange Commission charged Trijya Vakil, a former senior director at Elanco Animal Health, and her friend Neeraj Visen with insider trading related to Elanco’s $440 million acquisition of Kindred Biosciences, as detailed in a complaint filed in the U.S. District Court for the Southern District of New York on July 11, 2025.
The case was resolved swiftly, with both Vakil and Visen pleading guilty to parallel criminal charges and consenting to settlements. They agreed to judgments enjoining future violations, and monetary penalties have been proposed and are pending court approval.
During the relevant period, Neeraj Visen was employed as a Senior Licensing Manager at a university in Florida. He later became the Director of Licensing for Engineering at a university in Connecticut. He has never been associated with any entity registered with the SEC.
Visen is a long-time friend of Trijya Vakil, having grown up together in India. They communicated regularly via instant messaging and held weekly video conference calls in 2021, and Visen visited Vakil in New Jersey in February 2020 for a social gathering.
Specific Charges and Legal Framework
The SEC charged Vakil and Visen under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, alleging they traded on MNPI about Elanco’s acquisition of Kindred Biosciences. The violations involved:
- Employing devices, schemes, or artifices to defraud.
- Making untrue statements or omitting material facts, rendering statements misleading.
- Engaging in acts operating as fraud or deceit.
The SEC seeks:
- Permanent injunctions to prevent future violations.
- Officer and director bars prohibiting both from serving in executive roles at public companies.
- Disgorgement of $111,884.50 in ill-gotten gains plus prejudgment interest.
- Civil monetary penalties, with amounts to be determined by the court.
- Additional relief as deemed just by the court.
Parallel criminal charges by the U.S. Attorney’s Office for the Southern District of New York resulted in guilty pleas, with sentencing details undisclosed. The SEC demanded a jury trial for all triable issues.
Trijya Vakil’s Insider Access and Breach
As Senior Director of Product Innovation at Elanco, Trijya Vakil, 52, of Wynnewood, Pennsylvania, had access to confidential corporate development activities.
In April 2021, she joined the due diligence team for the acquisition of Kindred Biosciences, code-named “Project Knight,” gaining detailed knowledge of deal negotiations, timing, and strategy, classified as “RED” (highly confidential) under Elanco’s policies.
Despite completing insider trading policy training in May 2021, which prohibited trading in securities of other companies based on MNPI learned through employment, Vakil violated these policies by trading and tipping Visen.
Timeline of Trading and Acquisition Events
- April 2021: Vakil joined Elanco’s due diligence team, accessing MNPI about the Kindred acquisition.
- May 12, 2021: Vakil purchased 500 shares of Kindred stock, expecting a price increase.
- May–June 2021: Vakil disclosed the acquisition to Visen multiple times via videoconference calls and instant messages, intending for him to trade.
- June 15, 2021: Vakil tipped Visen that the announcement was imminent. Visen purchased 38,000 shares of Kindred stock.
- June 16, 2021: Elanco and Kindred announced the $440 million acquisition, with Kindred’s stock price surging ~46% from $6.34 to $9.23 per share.
- August 27, 2021: The acquisition closed, making Kindred a wholly owned subsidiary of Elanco.
Financial Details and Trading Profits
The scheme yielded $111,884.50 in illicit gains:
- Vakil earned $2,447.50 from 500 shares.
- Visen earned $109,437 from 38,000 shares.
The acquisition valued Kindred at $9.25 per share, a 52% premium over its 30-day average stock price. The SEC seeks disgorgement of all profits plus interest and penalties.
Cover-Up Attempts
Trijya Vakil falsely told the FBI she might have mentioned the acquisition once due to job frustration, not intending for Neeraj Visen to trade. She attempted to coordinate a false story with Visen before an FBI-recorded call, which he declined to corroborate. These actions, along with false statements during a FINRA inquiry, definitely underscored the misconduct.
Official Statements and Investigation
The SEC’s litigation release (LR-26348) highlighted the defendants’ post-trade misconduct. The Market Abuse Unit, led by Joseph G. Sansone, with investigators Derek M. Schoenmann, Jawad B. Muaddi, and Assunta Vivolo, detected the scheme via FINRA’s market surveillance system, which flagged suspicious trading patterns. Schoenmann and Muaddi led litigation under Alexander M. Vasilescu.
Elanco-Kindred Biosciences Acquisition
Elanco, an Indiana-based biopharmaceutical company (NYSE: ELAN), acquired Kindred Biosciences, a Delaware-based pet therapeutics company (Nasdaq: KIN), for $440 million to expand into the $1+ billion pet health dermatology market, adding three potential blockbuster products expected to generate $100 million in revenue by 2025. Kindred, founded in 2012, focused on veterinary biologics.
This case reflects a return to traditional SEC insider trading enforcement under Chairman Paul Atkins, emphasizing:
- SEC-DOJ coordination through parallel actions.
- Effectiveness of Data Analytics and Market Surveillance.
- Pursuit of violations regardless of monetary scale.
The swift resolution underscores the strength of evidence and the SEC’s focus on information integrity.
Summary of Parties, Roles, and SEC Actions
| Party | Role & Alleged Misconduct | SEC Action (Charges/Relief) |
|---|---|---|
| Trijya Vakil | Senior Director at Elanco; traded on MNPI, tipped Visen; earned $2,447.50; attempted cover-up | Charged with violating Exchange Act Section 10(b) and Rule 10b-5; seeks injunction, disgorgement, penalties, officer/director bar. |
| Neeraj Visen | Tipped by Vakil; traded 38,000 shares, earned $109,437; declined to corroborate false story | Charged with violating Exchange Act Section 10(b) and Rule 10b-5; seeks injunction, disgorgement, penalties, officer/director bar. |
Conclusion
The Vakil-Visen case, filed on July 10, 2025, and resolved swiftly, illustrates the risks of misusing MNPI during corporate transactions. The defendants’ guilty pleas and settlements, combined with evidence of cover-up attempts, align with the SEC’s enforcement priorities. The case, detected via FINRA’s surveillance, underscores the importance of robust information barriers and compliance training in corporate settings.
