SEC Announces Settled Insider Trading Charges in Chimerix Acquisition Case

The Securities and Exchange Commission (SEC) has announced settled charges against Weizheng Zeng of San Diego, California for insider trading ahead of the March 5, 2025 announcement that Jazz Pharmaceuticals plc would acquire Chimerix, Inc. through a cash tender offer.

According to the SEC's order, Zeng breached his duty of trust to Jazz Pharmaceuticals by purchasing Chimerix securities based on material nonpublic information he learned while employed at Jazz and assigned to conduct due diligence on the transaction.

The order details that between February 19, 2025 and March 4, 2025, Zeng purchased 19,902.469 shares of Chimerix stock across six accounts. On the day of the merger announcement, Chimerix stock closed 70.57% higher, resulting in illicit profits of $69,011 for Zeng.

The SEC found Zeng violated antifraud provisions of the Securities Exchange Act of 1934. Without admitting or denying the findings, he consented to a cease-and-desist order and agreed to pay disgorgement of $69,011, prejudgment interest of $2,443.25, and a civil penalty of $69,011.