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

According to the SEC’s Order, Zeng breached his duty of trust and confidence he owed to Jazz by purchasing the securities of Chimerix based on material nonpublic information that he learned while employed at Jazz, where he was assigned to conduct due diligence on the Chimerix transaction.

As found in the Order, between February 19, 2025 (after joining the due diligence team) and March 4, 2025 (the day before the announcement) Zeng purchased 19,902.469 shares of Chimerix stock in six separate accounts. On the day of the merger announcement, the Order finds, Chimerix stock closed 70.57% higher than the previous day, resulting in profits for Zeng of $69,011.

The SEC’s Order finds that Zeng violated the antifraud provisions of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3(a) thereunder. Without admitting or denying the SEC’s findings, Zeng consented to the issuance of 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.