- Richard C. Blum, Sen. Dianne Feinstein’s late husband, sold about US$1.5 million to US$6 million of Allogene Therapeutics shares on Jan. 31 and Feb. 18, 2020 as COVID-19 fears began to spread.
- The sales around roughly US$21.72 and US$24.25 were above Allogene’s 2020 low near US$18.22, undercutting claims he sold near that year’s bottom.
- Feinstein said the trades were handled without her involvement via a blind trust, and the FBI closed its inquiry in 2020 without charges.
- The episode continues to fuel calls for tighter limits and clearer disclosure on lawmakers’ and spouses’ trading in policy-sensitive sectors.
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The central factual issue is whether the sales by Richard Blum could reasonably be characterized as “near its 2020 low.” Examination of historical share-price data for Allogene Therapeutics (ticker ALLO) shows that on January 31, 2020, the stock closed at about US$21.72 and on February 18, 2020, it was about US$24.25; the actual low in 2020 for ALLO was closer to US$18.22 during the post-COVID crash in late March. Thus, the sales were above that low and in the upper range of 2020 values.
The timing of the trades—immediately after Senate briefings (January 24, 2020) about the worsening COVID threat but before markets fully reacted—raises scrutiny despite there being no finding of wrongdoing. Feinstein’s spokesman insists she was not involved and that the transactions were disclosed, and the FBI ended its inquiry without charges. Under Senate rules, spouses’ trades must be reported and Feinstein’s were. Blind trust status is asserted as removing involvement.
Strategically, cases like this worsen public confidence in governance and asset transparency. The discrepancy between “sold at near-low” framing and the truth amplifies media narratives of elite misuse of privileged knowledge. There is growing bipartisan pressure for stricter restrictions on lawmakers and their families trading in assets that are likely to be affected by governance decisions or public health crises. The STOCK Act, disclosure deadlines, blind trust requirements, and ethics rules are all under renewed scrutiny.
Supporting Notes
- Richard Blum sold US$1.5 million to US$6 million of Allogene Therapeutics stock in two transactions on Jan. 31 and Feb. 18, 2020.
- On those dates, ALLO shares were trading at ~US$21.72 (Jan 31) and ~US$24.25 (Feb 18).
- Allogene’s lowest share price in 2020 was ~US$18.22 per share in late March—inferior to the prices at which Blum sold.
- Sen. Feinstein has said her assets are held in a blind trust since 1992 and that she had “no input” into her spouse’s decisions.
- Feinstein was questioned by law enforcement and provided documentation, and the FBI formally closed its investigation in May 2020 without charges.
- The characterization in some reporting that the stocks were sold “near 2020 low” is inconsistent with available pricing data.