A federal judge in California declared a mistrial Wednesday in the alleged insider-trading scheme of James Mazzo after the jury deadlocked on whether Mr. Mazzo gave insider trading tips about his company’s merger to retired Major League player Doug DeCinces.
The jury voted 10 to 2 in favor of acquitting Mr. Mazzo, 61, former CEO of Advanced Medical Optics, of 16 insider trading charges and four perjury charges, according to the clerk for U.S. District Judge Andrew J. Guilford, who presided over the 5-week trial, according to news reports.
According to Courthouse News Service,1 in an emailed statement, Mr. Mazzo’s lead attorney said Mr. Mazzo was “gratified by the result” in the case. His attorney, Richard Marmaro, with Skadden, Arps, Slate, Meagher & Flom, said the attorneys “continue to believe in Jim Mazzo’s innocence.”
Mr. Mazzo, who is now Global President for Carl Zeiss Meditec's Strategic Business Unit Ophthalmic Devices, is an ex-neighbor of Mr. DeCinces, who was convicted in May of 14 counts of insider trading stemming from stock tips he allegedly received from Mr. Mazzo.
In May, a separate jury also deadlocked on whether to convict Mr. Mazzo, who was accused of telling Mr. DeCinces that Advanced Medical Optics was to be acquired in January 2009 by Abbott Laboratories at more than twice the market price per share. Mr. DeCinces bought thousands of shares and scored a profit of about $1.3 million when Abbott acquired the company for about $22 a share, according to court reports. Mr. Marmaro claimed that DeCinces had bought the Advanced Medical stock because of recommendations from an expert stock picker he knew — not because of insider tips from Mr. Mazzo.
1. Debenedictis D. Jury Hangs in SoCal Insider-Trading Trial. Courthouse News Service. Accseed February 22, 2016. https://www.courthousenews.com/jury-hangs-in-socal-insider-trading-trial/