An indictment charging David Pidgeon with securities fraud stemming from insider trading based on misappropriated financial information belonging to his employer has been unsealed.  

Mr Pidgeon was arrested on Tuesday.

“When corporate insiders misuse confidential information for personal gain, they undermine the integrity of our financial system,” said U.S. attorney Jamie McDonald.  

As alleged in the indictment, in or about October 2025, Mr Pidgeon, then senior director of operations at Treace Medical Concepts, Inc, obtained material non-public information about TMCI’s lower sales volume and difficulty meeting its financial projections.  

Days before TMCI’s third quarter earnings announcement, Mr Pidgeon sold shares of other issuers and used the proceeds to purchase short-term put options in TMCI stock.  

Mr Pidgeon’s trades occurred during a company-wide blackout period when TMCI employees were prohibited from trading in TMCI securities and in violation of TMCI’s policies, which prohibited employees from trading in TMCI options at any time.

On November 6, 2025, after market close, TMCI announced its third-quarter financial results, which included a net loss of $16.3 million and downwardly adjusted 2025 revenue projections. The following day, TMCI’s stock price dropped approximately 28 per cent. That same day, Mr Pidgeon sold all of his TMCI options.

Mr Pidgeon, 40, of Jacksonville, Florida, is charged with one count of securities fraud under Title 15 of the United States Code, which carries a maximum sentence of 20 years in prison, and one count of securities fraud under Title 18 of the United States Code, which carries a maximum sentence of 25 years in prison.