Sai-Hong Ignatius Ou

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26198 / Dec. 18, 2024

Securities and Exchange Commission v. Sai-Hong Ignatius Ou, No. 1:24-cv-13113 (D. Mass. filed Dec. 18, 2024)

SEC Charges Principal Investigator of Pharmaceutical Trial with Insider Trading

The Securities and Exchange Commission today filed charges against Sai-Hong Ignatius Ou, a physician and clinical professor at a California public university, for insider trading in advance of an October 28, 2022, public announcement relaying positive news about clinical trials of a cancer fighting drug being developed by Nuvalent, Inc., for which Ou was serving as a principal clinical investigator. Nuvalent is a Massachusetts-based pharmaceutical company.

According to the SEC’s complaint, on June 16, 2022, Ou—while serving as the principal investigator at his California university for clinical trials of Nuvalent’s cancer fighting drug—learned that Nuvalent would be publicly announcing positive clinical trial results at a conference on October 28, 2022. The SEC’s complaint further alleges that, after learning of Nuvalent’s planned public announcement, Ou purchased 80,000 shares of Nuvalent stock. Following the announcement on October 28, 2022, Nuvalent’s stock price increased by 60%, resulting in the value of the 80,000 Nuvalent shares Ou purchased after June 16 to increase by $1,520,455.

The SEC’s complaint, filed in in the United States District Court for the District of Massachusetts, charges Ou with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the complaint’s allegations, Ou has consented to entry of a final judgment that enjoins him from violating the charged provisions, orders him to pay disgorgement of the $1,520,455 in illicit profits with prejudgment interest, orders him to pay a civil penalty of $1,520,455, and prohibits him from serving as an officer or director of a public company for five years. The judgment is subject to court approval. 

The SEC’s investigation was conducted by Sean J. Fishkind, Mark Albers, Alfred Day, Janet Conforti, and Celia D. Moore, all of the SEC’s Boston Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.