The U.S. Securities and Exchange Commission moved on Monday to dismiss insider-trading proceedings against a man accused of illegally trading in Herbalife.

The SEC's enforcement division sought to dismiss the civil charges against Jordan Peixoto because two crucial witnesses were not available for the March 16, 2015 trial, according to a filing dated Monday.

The SEC had alleged that Peixoto made $47,100 in 2012 by trading illegally in Herbalife put options after a friend shared news that hedge fund manager William Ackman was about to reveal a big bet against the diet supplement company.

Peixoto was an analyst at accounting firm Deloitte & Touche at the time. In October, he sued to stop the regulator from continuing the case.

Peixoto's lawyers, Robert Gottlieb and Derrelle Janey of Gottlieb & Gordon, in a statement on Monday called the result a "tremendous victory for the rule of law" and said there were numerous problems with the case.

An SEC administrative law judge on Monday said it was cancelling the March 2015 hearing because of the enforcement division's decision to dismiss the charges.