The full scope of the case is not yet settled. The SEC complaint alleges at least eight deal announcements involving Cravath clients between May 2025 and later dates, and it says every security Balli traded was on the firm's restricted list at the time and that he never sought clearance. The complaint's end date and the total value of the trades have not been made public. After his broker closed his account in August 2026, prosecutors allege Balli opened a new account at another firm, listed himself as unemployed, and made the Pacira trades there. Cravath says Balli was never part of its legal staff and is no longer employed by the firm. The firm is cooperating with investigators and is not charged with wrongdoing. All allegations remain unproven.
The case matters because it involves a support employee, not a lawyer, and it comes amid a run of insider trading allegations at major firms. In May, US authorities accused a former Goodwin lawyer of being central to a network trading on confidential takeover information. Firms should review who can reach deal files beyond the deal team, and how restricted lists are enforced for staff who support legal work. Attorneys working on Cravath-linked or other high-profile deals should expect closer scrutiny of pre-announcement trading across all levels of support staff.