Taysha Gene Therapies Board Hit With Insider Trading Lawsuit

An investor sued Taysha Gene Therapies Inc.'s senior leaders, saying they timed a stock placement last summer to exploit inside information about promising clinical trial data that quadrupled the biotech company’s share price.

The lawsuit, made public Monday, says Taysha’s board and top executives manipulated the timing of both the positive disclosures and the private investment in public equity, or PIPE, to maximize profits for themselves and a group of about 40 investors tied to them. Participants in the stock placement “realized near immediate gains of $205 million,” the suit says.

Company insiders used the “startlingly good four-week result for ...