SEC v. Nader Pourhassan; and Kazem Kazempour, No. LR-25596, District of Maryland (Dec. 20, 2022) — Press Release
raw: Nader Pourhassan and Kazem Kazempour
Nader Pourhassan and Kazem Kazempour, No. 8:22-cv-03284 (Dec. 20, 2022)
Former CytoDyn CEO Nader Pourhassan and research firm CEO Kazem Kazempour were charged by the SEC with securities fraud and insider trading for misleading investors about FDA application progress.
The SEC charged Nader Pourhassan and Kazem Kazempour with violating federal antifraud provisions after falsely claiming a completed Biologics License Application for leronlimab had been submitted to the FDA. Pourhassan allegedly sold $15.8 million in stock to net over $4.7 million in profits, while Kazempour sold more than $420,000 in shares. The SEC is seeking disgorgement, civil penalties, and officer and director bars alongside parallel criminal charges from the DOJ.
The SEC has charged Nader Pourhassan, former CEO of CytoDyn Inc., and Kazem Kazempour, CEO of a contract research organization, with securities fraud and insider trading. The defendants allegedly issued misleading press releases regarding the progress of clinical trials for the drug leronlimab, specifically claiming a completed Biologics License Application had been submitted to the FDA. In reality, the FDA found the submission woefully inadequate, a fact Pourhassan allegedly concealed from shareholders. During the scheme, Pourhassan sold approximately $15.8 million in CytoDyn stock, netting profits of more than $4.7 million, while Kazempour sold over $420,000 in shares. The SEC is seeking disgorgement of ill-gotten gains, civil penalties, and permanent officer and director bars. These civil charges are being brought in parallel to criminal charges announced by the U.S. Department of Justice.
Exhibits & Attached Documents (2)
Extracted insights
- $15.80M $15.8 million $10M–$100M
- $4.70M $4.7 million $1M–$10M
- $420K $420,000 $100K–$1M
- company cytodyn inc
- agency Department of Justice
- person kazem kazempour
- person nader pourhassan
- scheme_term nader pourhassan with fraud and insider trading
- agency Securities and Exchange Commission
- person sheldon l. pollock
- Securities And Exchange Commission Charged Nader Pourhassan with fraud and insider trading
- Nader Pourhassan Repeatedly Issued Press releases exaggerating CytoDyn's progress
- CytoDyn Inc Falsely Announced Submission of completed Biologics License Application to FDA
- Nader Pourhassan Did Not Alert Shareholders to this information
- Nader Pourhassan Sold Approximately $15.8 million worth of CytoDyn stock
- Kazem Kazempour Sold More than $420,000 of CytoDyn stock
- Securities And Exchange Commission Complaint Charges Pourhassan and Kazempour with violating antifraud provisions
- United States Department Of Justice Announced Criminal charges against Pourhassan and Kazempour
- Litigation Led By Lee Greenwood of the New York Regional Office
- Case Supervised By Sheldon L. Pollock
SEC Charges Former Biotech CEO with Fraud, Insider Trading; Research Firm CEO Also Charged in Scheme Litigation Release No. 25596 / December 20, 2022 Securities and Exchange Commission v. Nader Pourhassan and Kazem Kazempour, 8:22-cv-03284 (D. Md. filed December 20, 2022) The Securities and Exchange Commission today charged Nader Pourhassan, the former CEO of CytoDyn Inc, with fraud and insider training in connection with providing misleading information to shareholders about the progress of a clinical research treatment for COVID-19 and HIV. According to the SEC's complaint, Pourhassan repeatedly issued press releases exaggerating CytoDyn's progress with regard to leronlimab, an antibody which was administered to patients in clinical trials to treat various diseases. The complaint alleges that in an April 2020 press release, CytoDyn falsely announced that the company had submitted a completed Biologics License Application to the U.S. Food and Drug Administration-a key milestone that caused the company's stock price to increase. As set forth in the complaint, the FDA submission was woefully inadequate, and the FDA alerted the company of those deficiencies within days, however, Pourhassan did not alert shareholders to this information. In the meantime, Pourhassan allegedly sold approximately $15.8 million worth of CytoDyn stock based on the false information, netting profits of more than $4.7 million. The SEC's complaint further alleges that Kazem Kazempour, CEO of a contract research organization that interfaced with the FDA on CytoDyn's behalf, signed off on the incomplete application, and subsequently also sold more than $420,000 of CytoDyn stock. The SEC's complaint, filed in federal district court in Maryland, charges Pourhassan and Kazempour with violating the antifraud provisions of the federal securities laws, and seeks disgorgement of ill-gotten gains with prejudgment interest, civil penalties, officer and director bars, and permanent injunctive relief. In a parallel action, the U.S. Department of Justice today announced criminal charges against Pourhassan and Kazempour. The SEC's investigation, which is ongoing, is being conducted by Howard S. Kim, Jacqueline Fine, and Adam S. Grace, and the litigation will be led by Lee Greenwood of the New York Regional Office. The case is being supervised by Sheldon L. Pollock. SEC Complaint
SEC Charges Former Biotech CEO with Fraud, Insider Trading; Research Firm CEO Also Charged in Scheme Litigation Release No. 25596 / December 20, 2022 Securities and Exchange Commission v. Nader Pourhassan and Kazem Kazempour, 8:22-cv-03284 (D. Md. filed December 20, 2022) The Securities and Exchange Commission today charged Nader Pourhassan, the former CEO of CytoDyn Inc, with fraud and insider training in connection with providing misleading information to shareholders about the progress of a clinical research treatment for COVID-19 and HIV. According to the SEC's complaint, Pourhassan repeatedly issued press releases exaggerating CytoDyn's progress with regard to leronlimab, an antibody which was administered to patients in clinical trials to treat various diseases. The complaint alleges that in an April 2020 press release, CytoDyn falsely announced that the company had submitted a completed Biologics License Application to the U.S. Food and Drug Administration-a key milestone that caused the company's stock price to increase. As set forth in the complaint, the FDA submission was woefully inadequate, and the FDA alerted the company of those deficiencies within days, however, Pourhassan did not alert shareholders to this information. In the meantime, Pourhassan allegedly sold approximately $15.8 million worth of CytoDyn stock based on the false information, netting profits of more than $4.7 million. The SEC's complaint further alleges that Kazem Kazempour, CEO of a contract research organization that interfaced with the FDA on CytoDyn's behalf, signed off on the incomplete application, and subsequently also sold more than $420,000 of CytoDyn stock. The SEC's complaint, filed in federal district court in Maryland, charges Pourhassan and Kazempour with violating the antifraud provisions of the federal securities laws, and seeks disgorgement of ill-gotten gains with prejudgment interest, civil penalties, officer and director bars, and permanent injunctive relief. In a parallel action, the U.S. Department of Justice today announced criminal charges against Pourhassan and Kazempour. The SEC's investigation, which is ongoing, is being conducted by Howard S. Kim, Jacqueline Fine, and Adam S. Grace, and the litigation will be led by Lee Greenwood of the New York Regional Office. The case is being supervised by Sheldon L. Pollock. SEC Complaint