Paul Jorgensen, Doximity's former Chief Revenue Officer, must pay nearly $500,000 to the Securities and Exchange Commission. This resolves an insider trading case. He was previously ordered to forfeit over $2.5 million in a parallel criminal case. A court sentenced him to 26 months in prison in that case.
The SEC alleged Jorgensen used material nonpublic information to trade Doximity securities. This occurred on two occasions in 2022 and 2023. He traded ahead of negative quarterly earnings announcements. His illegal trades involved selling shares and buying put options. These actions stemmed from his knowledge of lower-than-expected sales and sales team underperformance. He also knew about a planned round of layoffs, which included his own termination. The trades allowed him to avoid significant losses. He generated over $2.5 million in illicit profits.