Ruimin Xie
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.