SEC Settles Insider Trading Case Against Jazz Engineer Over Chimerix Trade

The SEC settled an insider‑trading case against Jazz engineer Weizheng Zeng, who made $69,011 by buying Chimerix stock before its acquisition announcement. He must disgorge the profit, pay $2,443.25 in prejudgment interest and a matching civil penalty.

Zeng was part of Jazz Pharmaceuticals’ due‑diligence team for the planned cash tender offer of Chimerix, Inc. While assigned to that team he learned nonpublic information about the deal. Between February 19 and March 4, 2025 he bought 19,902.469 shares of Chimerix across six brokerage accounts. On March 5, 2025 Jazz announced the acquisition and Chimerix’s stock closed 70.57% higher than the prior day.

The SEC’s order shows Zeng’s trades generated $69,011 in profit. Without admitting or denying the findings, Zeng agreed to pay that amount in disgorgement, $2,443.25 in prejudgment interest and a civil penalty of $69,011. The settlement resolves alleged violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b‑5 and 14e‑3(a).

The case illustrates the SEC’s continued focus on insider trading linked to M&A activity, especially when employees cross company boundaries. Jazz Pharmaceuticals (JAZZ) holds a market cap of roughly $12.3 billion, while Chimerix (CMRX) was valued at about $480 million before the tender offer. The 70.57% price jump added roughly $240 million to Chimerix’s market value, underscoring the material impact of the nonpublic information.

Investors should watch for any follow‑up civil actions against Zeng and how Jazz integrates Chimerix’s pipeline over the next quarters.