Karuna investor settles charge of insider trading that netted $120K on nonpublic clinical trial information
The Securities and Exchange Commission (SEC) settled insider trading charges against one of Karuna Therapeutics’ investors, a doctor and medical investigator who bought more than 1,600 shares after hearing secret details from a positive clinical trial readout. Mohammed Bari, M.D., of Rancho Santa Fe, California, was charged by the SEC for scooping up shares after hearing Karuna was soon to announce positive clinical trial results for schizophrenia drug KarXT. The SEC's complaint alleges that Bari, a medical investigator on the KarXT trial, was informed by the company in November 2019 that the therapy had been found safe and effective during the phase 2 trial. Karuna was preparing to announce the results, hailed as a “significant milestone” for the clinical-stage biotech. Within hours, Bari began placing orders for Karuna common stock, acquiring more than 1,600 shares, the SEC said. Bari nabbed profits of nearly $120,000 when the trial n...