SEC v. Ruimin Xie, No. LR-26162, District of New Jersey (Oct. 17, 2024) — Press Release
raw: Ruimin Xie
Ruimin Xie, No. 2:24-cv-09801 (D.N.J. Oct. 17, 2024)
Ruimin Xie, a former BELLUS Health Director, was charged with insider trading for using non-public acquisition knowledge to gain $59,408.42 and has consented to a multi-million dollar settlement.
Ruimin Xie, the former Director of Analytical Development at BELLUS Health Inc., was charged with violating Section 10(b) of the Securities Exchange Act and Rule 10b-5. He allegedly used material non-public information regarding an acquisition by GSK plc to purchase shares and call options, yielding $59,408.42 in gains. Xie consented to a judgment including $59,408.42 in disgorgement, $6,800.89 in interest, a $59,408.42 civil penalty, and a five-year officer/director bar.
The SEC charged Ruimin Xie, a former Director of Analytical Development at BELLUS Health Inc., with insider trading ahead of the company's acquisition by GSK plc. Between April 9 and 17, 2023, Xie leveraged his role in the due diligence process to purchase 7,051 shares and 10 call options. Following the acquisition announcement, BELLUS Health stock surged by approximately 99%, resulting in $59,408.42 in ill-gotten gains for Xie. To resolve charges of violating Section 10(b) of the Securities Exchange Act and Rule 10b-5, Xie consented to a judgment without admitting or denying the allegations. The settlement requires him to pay $59,408.42 in disgorgement, $6,800.89 in prejudgment interest, and a $59,408.42 civil monetary penalty. Additionally, Xie is barred from serving as an officer or director of a public company for five years. This judgment remains subject to court approval.
Exhibits & Attached Documents (1)
Extracted insights
- $59K $59,408 $10K–$100K
- $7K $6,800 <$10K
- agency Financial Industry Regulatory Authority
- person ruimin xie
- agency Securities and Exchange Commission
- Securities And Exchange Commission filed charges against Ruimin Xie
- Ruimin Xie learned that GSK was conducting due diligence of Bellus Health
- Ruimin Xie helped respond to GSK's due diligence questions
- Ruimin Xie purchased 7,051 Bellus Health shares and 10 short-term, out-of-the-money call options
- GSK's acquisition of Bellus Health caused the price of Bellus Health stock to rise by approximately 99%
- Ruimin Xie generated ill-gotten gains of $59,408.42
- Securities And Exchange Commission charges Ruimin Xie with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
- Ruimin Xie consented to a judgment permanently enjoining him from violations of the charged provisions related to insider trading
- Ruimin Xie agreed to pay disgorgement of $59,408.42 plus prejudgment interest of $6,800.89
- Ruimin Xie agreed to pay a civil monetary penalty of $59,408.42
- Ruimin Xie was barred from serving as an officer or director of a public company for a period of five years
- Securities And Exchange Commission conducted investigation by Ivan Panchenko, David D'Addio, and Celia Moore of the SEC's Boston Regional Office
- Securities And Exchange Commission appreciates assistance from Financial Industry Regulatory Authority
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26162 / October 17, 2024 Securities and Exchange Commission v. Ruimin Xie, No. 2:24-cv-09801 (D.N.J. filed Oct. 15, 2024) SEC Charges New Jersey Resident with Insider Trading in His Company’s Securities On October 15, 2024, the Securities and Exchange Commission filed charges against Ruimin Xie, a resident of New Jersey, for insider trading in advance of the April 18, 2023 announcement that BELLUS Health Inc. would be acquired by GSK plc. The SEC’s complaint alleges that, between April 9 and 11, 2023, Xie—then the Director of Analytical Development at BELLUS Health—learned that GSK was conducting due diligence of BELLUS Health and helped respond to GSK’s due diligence questions. The complaint further alleges that, between April 12 and 17, 2023, Xie purchased 7,051 BELLUS Health shares and 10 short-term, out-of-the-money call options that allowed him to purchase another 1,000 BELLUS Health shares. On April 18, 2023, GSK’s acquisition of BELLUS Health was publicly announced and the price of BELLUS Health stock rose by approximately 99%, allegedly generating ill-gotten gains of $59,408.42 for Xie. The SEC’s complaint, filed in the U.S. District Court for the District of New Jersey, charges Xie with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations, Xie consented to a judgment permanently enjoining him from violations of the charged provisions related to insider trading; ordering him to pay disgorgement of $59,408.42 plus prejudgment interest of $6,800.89; imposing a civil monetary penalty of $59,408.42; and barring him from serving as an officer or director of a public company for a period of five years. The judgment is subject to court approval. The SEC’s investigation was conducted by Ivan Panchenko, David D’Addio, and Celia Moore of the SEC’s Boston Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26162 / October 17, 2024 Securities and Exchange Commission v. Ruimin Xie, No. 2:24-cv-09801 (D.N.J. filed Oct. 15, 2024) SEC Charges New Jersey Resident with Insider Trading in His Company’s Securities On October 15, 2024, the Securities and Exchange Commission filed charges against Ruimin Xie, a resident of New Jersey, for insider trading in advance of the April 18, 2023 announcement that BELLUS Health Inc. would be acquired by GSK plc. The SEC’s complaint alleges that, between April 9 and 11, 2023, Xie—then the Director of Analytical Development at BELLUS Health—learned that GSK was conducting due diligence of BELLUS Health and helped respond to GSK’s due diligence questions. The complaint further alleges that, between April 12 and 17, 2023, Xie purchased 7,051 BELLUS Health shares and 10 short-term, out-of-the-money call options that allowed him to purchase another 1,000 BELLUS Health shares. On April 18, 2023, GSK’s acquisition of BELLUS Health was publicly announced and the price of BELLUS Health stock rose by approximately 99%, allegedly generating ill-gotten gains of $59,408.42 for Xie. The SEC’s complaint, filed in the U.S. District Court for the District of New Jersey, charges Xie with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations, Xie consented to a judgment permanently enjoining him from violations of the charged provisions related to insider trading; ordering him to pay disgorgement of $59,408.42 plus prejudgment interest of $6,800.89; imposing a civil monetary penalty of $59,408.42; and barring him from serving as an officer or director of a public company for a period of five years. The judgment is subject to court approval. The SEC’s investigation was conducted by Ivan Panchenko, David D’Addio, and Celia Moore of the SEC’s Boston Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.