Short answer:
Based solely on the pressârelease you supplied, there is no information about insiderâtrading activity or abnormal marketâvolume patterns after the announcement. The release only describes the launch of a classâaction investigation by MonteverdeâŻ&âŻAssociates and does not contain any data on stockâprice movement, trading volume, or insiderâtransaction filings.
How to determine whether insider trading or unusual volume occurred
Because the press release itself does not contain the needed marketâbehavior data, you would need to consult a few additional sources to answer the question definitively:
| What to check | Why it matters | Where to find it |
|---|---|---|
| Intraday and daily trading volume for LVTX (Lava Therapeutics) before and afterâŻ2025â08â07 | A sudden spike in volume (especially relative to the 30âday average) can signal heightened interest, possible âinformationâdrivenâ trading, or market reaction to the news. | Bloomberg, Reuters, YahooâŻFinance, Nasdaq Market Activity page, or your brokerâs marketâdata platform. |
| Priceâaction / volatility (e.g., price change, % change, highâlow range) | Large price moves accompanying volume spikes may reinforce the suspicion of a marketâmoving event. | Same marketâdata sources as above. |
| SEC FormâŻ4 filings (insider trades) for the 5âbusinessâday window after the announcement | Insiders (executives, directors, large shareholders) are required to disclose purchases or sales of company stock on FormâŻ4. A sudden, sizable insider sale could be a red flag. | SECâs EDGAR system â âCompany Filingsâ â âFormâŻ4â search for CUSIPâŻ000000 (LVTX). |
| FormâŻ8âK or 6âK filings (material events) | Companies sometimes disclose material events that could affect the stock, including investigations, in these filings. | EDGAR âCompany Filingsâ â âFormâŻ8âK/6âKâ. |
| RuleâŻ10bâ5 / RuleâŻ144 insiderâtrading alerts** (e.g., via FINRAâs Trade Reporting & Surveillance) | If a FINRA or SEC surveillance system flagged a trade as potentially insiderâinformed, it would appear in regulatory alerts. | FINRAâs âMarket Surveillanceâ or thirdâparty compliance tools (e.g., Bloombergâs InsiderâTrade Monitor). |
| Shortâsale data (if short interest surged) | A rapid increase in shortâinterest can indicate market participants betting on a price decline after negative news. | Nasdaq ShortâInterest data, or dataâvendors like S3 Partners. |
| Options activity (e.g., large volume of puts) | Heavy putâoption buying can be a leading indicator of expectations of a price drop. | Optionsâanalytics platforms (e.g., OptionMetrics, CBOE). |
Typical âredâflagâ thresholds
| Metric | Redâflag threshold (example) |
|---|---|
| Volume | >âŻ2â3Ă the 30âday average daily volume (ADV) on the day of the announcement or the following day. |
| Price move | >âŻ5âŻ% price change (up or down) on the same day, especially if coupled with volume spikes. |
| Insider sale | An insider sells >âŻ10âŻ% of their holdings or a total insiderâsale value >âŻ$1âŻM within 5âŻbusiness days of the news. |
| Shortâinterest | Shortâinterest ratio (shortâtoâfloat) jumps >âŻ50âŻ% in a single day. |
What you can do right now
Pull the LVTX trade data for the period surrounding 7âŻAugâŻ2025 (e.g., 7âŻAugâŻ2025âŻââŻ14âŻAugâŻ2025).
- Look at daily volume, compare to the 30âday average.
- Note any âspikeâ days and the corresponding price movement.
- Look at daily volume, compare to the 30âday average.
Search SEC EDGAR for FormâŻ4 filings for LVTX in the same window.
- If you find any insider transactions, note the ticker, date, transaction type (purchase vs. sale), and amount.
Check for any 8âK or 6âK filings that might have been released concurrently (the investigation could be disclosed as a material event).
If you have a compliance platform (e.g., Bloombergâs InsiderâTrade Monitor, FINRAâs Trade Surveillance), run a âEventâTriggered Alertâ for LVTX on 7âŻAugâŻ2025 and the following 5âbusinessâday window.
Document your findings:
- If you see no abnormal volume and no insider trades, you can conclude that, as far as public data shows, there was no immediate insiderâtrading activity or unusual market activity.
- If you do see spikes or insider sales, flag them for further investigation (e.g., possible insiderâinformation leakage, market manipulation, or simply a reaction to the classâaction news).
- If you see no abnormal volume and no insider trades, you can conclude that, as far as public data shows, there was no immediate insiderâtrading activity or unusual market activity.
Bottom line
- From the press release alone: No evidence of insider trading or abnormal volume can be inferred.
- To answer definitively: You must examine marketâactivity data (volume, price, shortâinterest) and SEC insiderâtrade filings for LVTX around the announcement date.
If after performing those checks you still see no significant deviations from normal trading patterns, you can safely state that there was no observable insiderâtrading activity or unusual volume linked to the classâaction announcement. If you do spot anomalies, those would merit a deeper compliance or forensicâtrading review.