SEC Settles Insider Trading Case Against Former Vital Farms Controller
SEC settles insider trading charges against former Vital Farms controller Lloyd Wilson, seeking $21,524.97 disgorgement, penalties and a five-year bar.
Summary
SEC Litigation Release No. 26649, published September 28, 2026, reports a settled action filed September 24 against Lloyd Anderson Wilson, C.P.A., a former Vital Farms, Inc. corporate controller. The complaint, SEC v. Lloyd Anderson Wilson, No. 1:26-cv-05530-TRJ in the Northern District of Georgia, alleges Wilson accessed material nonpublic financial and earnings information while controller from November 2021 to March 2023. He allegedly bought Vital Farms shares in November 2022, March 2023 and May 2023, each time one day before scheduled earnings announcements and periodic SEC filings, generating more than $21,000 in profits.
The SEC charged Wilson under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, seeking an injunction, disgorgement with prejudgment interest, a civil penalty and an officer-and-director bar. Subject to court approval, Wilson consented to a permanent injunction, a five-year public-company officer-and-director bar, $21,524.97 in disgorgement, $4,845.92 in prejudgment interest and a $21,524.97 civil penalty.
Wilson also consented to a Rule 102(e)(3)(i) administrative order suspending him from practicing before the SEC as an accountant, with reinstatement available after five years. Brian M. Basinger and Krysta M. Cannon conducted the investigation under Stephen E. Donahue and Justin C. Jeffries. Robert K. Gordon will lead litigation with Basinger under M. Graham Loomis. The Ontario Securities Commission assisted.
Positives
- Wilson consented to $21,524.97 in disgorgement, $4,845.92 in interest and a matching $21,524.97 civil penalty.
- A proposed permanent injunction would prohibit Wilson from future violations of Section 10(b) and Rule 10b-5.
- A five-year officer-and-director bar would prevent Wilson from holding those positions at public companies.
- Rule 102(e)(3)(i) would suspend Wilson from practicing before the SEC as an accountant for at least five years.
- Ontario Securities Commission assistance demonstrates cross-border regulatory cooperation in the SEC investigation.
Risks & concerns
- Wilson allegedly earned more than $21,000 by trading Vital Farms shares using confidential financial and earnings information.
- Three alleged purchases occurred one day before scheduled earnings announcements and periodic SEC filings in November 2022, March 2023 and May 2023.
- The allegations involve a corporate controller who had access to Vital Farms’ material nonpublic financial information.
- The permanent injunction, monetary payments and five-year officer-and-director bar remain subject to court approval.
