Two former Okta sales managers will pay a combined $934,264 to settle Securities and Exchange Commission insider trading charges over put options they bought ahead of a guidance cut that sent the software company’s shares down 34 percent. The settled orders, announced September 15, 2026, name Andrew T. Neller of South Lyon, Michigan, and Jack E. Alexander of Rescue, California. Both consented to cease-and-desist orders without admitting the SEC’s findings.
What happened in the Okta insider trading case
The orders trace the conduct to a confidential, companywide meeting on August 4, 2022. Neller, then an Okta employee, learned that the company’s internal financial plan was wrong, too optimistic, and needed adjustment. He also learned that Okta was suffering significant attrition in its sales force and struggling to integrate a recently acquired company.
Neller acted on what he knew. On August 30, 2022, he purchased Okta put options.
The next day he warned Alexander, a friend and former Okta colleague, that the company would likely lower its financial guidance. Neller also advised him to buy put options. Alexander sold all of his Okta stock and purchased puts before the market closed.
After the close on August 31, Okta announced it was lowering full-year guidance for calculated billings, a key non-GAAP metric. On September 1, the stock fell 34 percent, sliding from $91.40 to $60.60 per share. Neller and Alexander then sold every put option they had bought.
Key facts and penalties from the SEC orders
The orders find that Neller and Alexander violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Neller realized profits of $98,754.00. Alexander realized profits of $170,859.52 and avoided further losses of $59,381.78 by selling his shares ahead of the announcement.
| Defendant | Disgorgement | Prejudgment interest | Civil penalty |
|---|---|---|---|
| Andrew T. Neller | $98,754.00 | $13,817.65 | $328,995.30 |
| Jack E. Alexander | $230,241.30 | $32,215.35 | $230,241.30 |
Neller’s civil penalty runs more than three times his trading profit. The commission structured the settlement to strip the gains and add a punitive multiple, a pattern designed to make insider trading mathematically unattractive.
The SEC brought the case as settled administrative proceedings under File Nos. 3-22722 and 3-22723. Matthew Meyerhofer of the San Francisco Regional Office conducted the investigation, under the supervision of Christina Filipp and Jason H. Lee.
Why insider trading matters to ordinary investors
Options markets are zero-sum. Every dollar Neller and Alexander collected came from traders on the other side of their contracts, many of them retail investors and funds trading without knowledge of Okta’s internal plan. When insiders trade on material nonpublic information, the informational edge is extracted from everyone else’s account.
The case also shows how long the SEC’s reach extends. The trades occurred in August 2022. The settlement arrived more than four years later, a reminder that leaving a company does not close the file.
What the settlement says about tippee liability
Alexander no longer worked at Okta during the trading window. He was a former colleague acting on a tip from a friend. The orders make clear that trading on inside information passed along by another person carries the same liability as trading on it directly. Friends, family members, and former coworkers who trade on a tip face identical antifraud exposure.
For investors, the practical lesson concerns market fairness rather than personal conduct. Public markets function only when participants believe prices reflect public information. Enforcement actions like this one exist to keep that belief intact.
How to recover your losses
Investors who suffered losses tied to broker misconduct, including unsuitable recommendations, unauthorized trading, churning, or misrepresentation, can pursue recovery through FINRA arbitration. Arbitration claims follow strict eligibility rules and filing deadlines. An early review of account statements and trade history preserves options that disappear with delay.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis, with no recovery meaning no fee.
Contact Haselkorn & Thibaut today
Time matters in securities fraud cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
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