The following is not meant to be legal advice.
Stanford University School of Business Professor Alan Jagolinzer raises issues on the higher returns enjoyed by 10b5-1 trading plan participants. The higher returns may be related to the timing of 10b5-1 trading plan initiations. There may be the conclusion that initiations do not take place in a way that are random. Professor Jagolinzer studied that many of the trade initiations seemed to take place ahead of negative news.
Professor Jagolinzer noted that insiders retain flexibility under the trading plans. For example, insiders do not need to stay with plans until they expire, and can often terminate a plan on short notice. It is not illegal for an insider to terminate a 10b5-1 trading plan, even if the insider is in possession of material non-public inside information at the time of the plan termination. Some insiders may be terminating their 10b5-1 trading plans when they know bad news is coming that will depress the stock price before a scheduled sale.
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