Feinstein Associate’s Allogene Stock Sale Reveals Ethics Risks in Congressional Disclosures

The timing and magnitude of Senator Feinstein’s husband Richard Blum’s sales of Allogene Therapeutics stock in early 2020 raise questions about conflict of interest and public perception. On January 31, 2020, Blum sold $500,001 to $1 million worth of ALLO shares when the stock traded near its intraday low (~$21.28), just above the lowest 2020 level (~$21.25). A second sale on February 18 reportedly expanded total sale proceeds to between $1.5 million and $6 million across both dates.

These transactions occurred in close proximity to a classified Senate briefing on January 24 regarding the potential coronavirus threat, intensifying scrutiny over whether members of Congress used privileged information for transactions—whether directly or through associates. Feinstein’s office claims she had no involvement in her husband’s investment decisions and cited a blind trust structure, while also providing documents to law enforcement to support this.

From a market standpoint, the January sale appears well-timed. ALLO stock traded essentially at its 2020 bottom at the time of sale, just before a rebound, whereas the broader market was beginning to decline. This suggests an outcome where capital was preserved and gains avoided ahead of broader losses. Analyst sentiment around that time was still constructive: Raymond James issued an “Outperform” rating with a $40 price target for ALLO shortly before.

Strategically, this case sits at the intersection of legal, ethical, and reputational risk. Even without proven wrongdoing, the optics of a senator’s spouse selling biotech shares immediately following a briefing on a major public health threat can fuel distrust, especially given public concerns around insider knowledge. While Feinstein’s team maintains she was not involved, questions remain: how blind was the trust? When were disclosures filed and reviewed? Were the sales precisely at reporting deadlines?

Open questions for further investigation include whether there was any communication between Feinstein and her husband about these trades; what specific information was discussed or had transpired by January 24 that could affect Allogene or similar biotech stocks; and whether the filings fully met Senate disclosure requirements in timing and accuracy. From a policy perspective, this episode contributes to ongoing debates about the adequacy of current rules governing congressional and related-party trades—particularly during times of emergent crisis.