ICYMI: 11Alive Atlanta: “Sen. David Perdue’s Stock Trades Net Thousands During Early Part of Opioid Crisis”

“2016 stock purchases and sales came while Sen. David Perdue’s Senate committee held hearings on opioid crisis”

“Records reviewed by 11Alive News show that Perdue made substantial profits from the metro Atlanta company’s stock as landmark opioid legislation was passing through Congress.”
 

Atlanta, Ga. — Last night, new investigative reporting by 11Alive’s Doug Richards uncovered new details revealing that Sen. David Perdue (R-Ga.) made “substantial profits” off of stock in a medical device company based in metro Atlanta that benefited from “landmark” legislation combating the opioid epidemic that Perdue’s committee helped pass. 

According to the report, just days before his Senate Judiciary Committee was set to hold a hearing on the opioid epidemic, Perdue bought up to $60,000 worth of stock in Halyard Health, a medical device company based in Alpharetta that specializes in pain management alternatives to opioids.

After the hearing, Perdue continued buying up to $150,000 work of shares.

The Senate got to work on legislation that addressed alternatives to opioids — like those offered by Halyard Health — and its stock price continued to rise. Perdue then began selling off his stock, netting between a 33 and 54 percent profit.

Dr. Tom Smith, an Emory University economist, said, “it certainly doesn’t look good.”

WATCH the 11Alive report:

Find key highlights from the report below.

• US Sen. David Perdue (R-Ga.) bought and sold stock in at least one medical device company whose price jumped even as Congress was trying to manage the opioid crisis. 
• Records reviewed by 11Alive News show that Perdue made substantial profits from the metro Atlanta company’s stock as landmark opioid legislation was passing through Congress. 
• Perdue has come under fire for much of this year for his stock trades at the start of the coronavirus pandemic.  These trades indicate Perdue made thousands of dollars in stock profits during the opioid crisis as well.
• Nearly five years ago, the Senate Judiciary Committee convened to take its first hard look at the opioid crisis.
• On January 27, 2016 — seven days before the hearing, one of the committee’s members, Sen. David Perdue, purchased more than $1,000 worth of stock in Alpharetta-based Halyard Health, a medical device company. One of Halyard’s specialties was pain management alternatives to opioids.
• Four times in the week prior to the January 27 opioid hearing — on January 20, 21, 25, and 26 – records show Perdue made four separate purchases of Halyard stock – valued at between $4,004 and $60,000.  Congressional records are deliberately vague about the exact values.
• After the hearing, Perdue kept right on purchasing Halyard stock. Records show that he purchased the company’s stock six more times, through the end of February 2016.
• According to Congressional records, Perdue’s Halyard stock purchases were valued at up to $150,000.
• At around that point, coverage was just beginning about the opioid crisis that was turning suburban Atlanta teenagers into heroin addicts in a geographic triangle that stretched from Atlanta to Canton to Gainesville.
• It was a heartbreaking story that received national attention — and attention in the halls of Congress.
• As legislation moved through the Senate, Perdue started selling. The value of Halyard stock had climbed — from a low of $24.11 when Perdue began buying, to as much as $37.03 per share by mid-summer, when he sold it all off.
• Price records indicated that Perdue made anywhere from a 33 to 54 percent profit over the seven-month period when Perdue bought, then sold, the stock in the company making pain management devices.
• “Thirty-three percent on a seven-month investment? I mean that’s a terrific return,” said Dr. Tom Smith, an Emory University economist.
• The New York Times this week reported Perdue is the most prolific stock trader in the US Senate.
• When he sold his Halyard stock, Perdue reported the sale was worth no more than $120,000 – real money for most Georgians, but a fraction of Perdue’s portfolio.
• “I hope everything is above boards,” Dr. Smith said. “I expect his trades will be under scrutiny, but it certainly doesn’t look good.”  

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