Rouzbeh “Ross” Haghighat; Behrouz “Bruce” Haghighat; Kirstyn Pearl; James Roberge; Seyedfarbod “Fabio” Sabzevari

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26383 / Aug. 22, 2025

Securities and Exchange Commission v. Rouzbeh Haghighat et al., No. 25-cv-14843 (D.N.J. filed Aug. 22, 2025)

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.

The case originated from the SEC Market Abuse Unit’s Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns.

In a parallel action, the U.S. Department of Justice previously announced criminal charges against Ross Haghighat, Bruce Haghighat, Pearl, Roberge, and Sabzevari.

The SEC’s complaint, filed in federal court in the District of New Jersey, charges Ross Haghighat, Bruce Haghighat, Pearl, Roberge, and Sabzevari with violations of the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks injunctive relief, disgorgement, and civil monetary penalties as to all defendants, and an officer and director bar as to Ross Haghighat.

The SEC’s investigation, which is continuing, was conducted by Andrew Palid, David Scheffler, John Rymas, and Michele T. Perillo of the Market Abuse Unit in the Boston Regional Office. This case has been supervised by Market Abuse Unit Chief Joseph G. Sansone. David London of the Boston Regional Office will lead the SEC’s litigation. The SEC appreciates the assistance of the U.S. Department of Justice’s Criminal Division Fraud Section, the U.S. Attorney’s Office for the District of New Jersey, the U.S. Postal Inspection Service, and the Financial Industry Regulatory Authority (FINRA).