SEC v. Mohammed A. Bari (insider trading, 2021)

Settled

✓ Checked against the primary document on October 3, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sec-mohammed-a-bari-insider-trading-2021) by email

In May 2021 the SEC announced settled charges against Dr. Mohammed Bari, a medical investigator in Karuna Therapeutics' KarXT trial, for buying Karuna stock after learning the results were positive, earning nearly $120,000. He agreed to an injunction and a $238,434 penalty, subject to court approval.

The record

What was ordered

Civil penalty

$238k

Disgorgement

—

Prejudgment interest

—

Total relief

$238k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced the settled complaint on May 27, 2021 as litigation release 25099, filed in the Southern District of California.

The complaint alleges Karuna told Bari in mid-November 2019 that KarXT had proven safe and effective and would be announced within days; he began buying within hours and acquired over 1,600 shares. The stock rose more than 440% after the November 18 announcement.

Without admitting or denying the allegations, Bari agreed to the injunction and penalty. The earlier record omitted the penalty.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Insider trading — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2021-05-27 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.