The Securities and Exchange Commission (SEC) filed a civil injunctive action alleging that former Shaw Group vice president Scott Zeringue and his brother-in-law engaged in insider trading in Shaw Group securities ahead of the July 2012 public announcement of Shaw’s acquisition by Chicago Bridge & Iron Company (CB&I). As an employee of Shaw, Zeringue owed a fiduciary duty to Shaw and its shareholders to keep confidential any material nonpublic information about the company. The SEC alleged that Zeringue traded company securities based on confidential information he possessed about the impending CB&I acquisition. The SEC alleged that Zeringue purchased 125 shares of Shaw common stock and asked his brother-in-law to purchase Shaw stock on his behalf. The brother-in-law allegedly rewarded Zeringue for the tip by giving Zeringue $30,000 in cash in November 2013. Zeringue, who previously pleaded guilty to related criminal charges (see Shaw Group instance, “U.S. v. Zeringue (Insider Trading)”), consented to a final judgment imposing an injunction, $96,000 in disgorgement and civil penalties, and a prohibition from acting as an office or director of a public company for 10 years.