SEC Charges Former Director, Four Others with Insider Trading Ahead of Chinook Acquisition Announcement

SEC Charges Former Director and Four Others with Insider Trading

The Securities and Exchange Commission today charged Rouzbeh “Ross” Haghighat, a former director of biopharmaceutical company Chinook Therapeutics, Inc., along with two of Haghighat’s family members and two of Haghighat’s friends, with insider trading ahead of the June 12, 2023 announcement that Novartis AG would acquire Chinook.

According to the SEC’s complaint, Ross Haghighat allegedly tipped his brother Behrouz “Bruce” Haghighat, his stepdaughter, Kirstyn Pearl, and his friends James Roberge and Seyedfarbod “Fabio” Sabzevari, with material nonpublic information he learned as a Chinook director about the upcoming acquisition. Based on this material nonpublic information, Bruce Haghighat, Pearl, Roberge, and Sabzevari each allegedly purchased Chinook common stock and/or options ahead of the acquisition announcement, and collectively made over $500,000 in illicit profits. The complaint further alleges Ross Haghighat also purchased Chinook common stock in a custodial account he managed for a minor stepchild four days before the acquisition was announced.

What Do You Say When the CEO is Sick?

What are the disclosure obligations of a publicly traded company when the CEO is ill? That is the question raised in a new securities class action lawsuit filed on August 22, 2025, against C3. ai, in which the plaintiffs allege that the defendants insufficiently disclosed the seriousness of and potential impact from the illness of the company’s CEO, Thomas Siebel. The lawsuit touches on long-standing concerns about company disclosures concerning senior executives’ health. A copy of the complaint can be found here.

Fewer Cases So Far, with a Focus on Retail Investor Fraud – A Look at the First Six Months of SEC Enforcement Under the New Administration

The enforcement results for the first six months of the new administration show that while the Securities and Exchange Commission (“SEC”) has instituted substantially fewer new enforcement actions as compared to the same period during the first and final years of the prior administration, the mix of cases that have been brought shows a clear focus on traditional fraud schemes affecting retail investors. As we discuss in this note, there are many factors that could be contributing to these trends, including that the results reflect new Chairman Paul Atkins’ stated priority of focusing enforcement resources on those who “lie, cheat, and steal.” While it is premature to conclude that these first six months will foreshadow what’s to come for the next three and a half years under Chairman Atkins, the data so far reflects an emphasis on cases involving retail customer or investor harm.

SEC Names Judge Margaret Ryan as Director of the Division of Enforcement

The Securities and Exchange Commission today announced that Judge Margaret “Meg” Ryan has been named Director of the Division of Enforcement, effective Sept. 2, 2025. Acting Director of Enforcement Sam Waldon will return to his previous role as Chief Counsel for the Division.

“I am thrilled to welcome Judge Ryan to the SEC,” said SEC Chairman Paul S. Atkins. “She brings to the Commission decades of experience as a respected judge and practitioner of the law. She is fulfilling a critical role. Judge Ryan will lead the Division guided by Congress’ original intent: enforcing the securities laws, particularly as they relate to fraud and manipulation.”

“I thank Sam for his service since January as Acting Director of Enforcement,” Chairman Atkins continued. “I am very pleased that he will continue serving at the Commission in the critical role of Chief Counsel for the Enforcement Division. His good judgement and knowledge of the securities laws serve the SEC very effectively.”