Boston Man to Settle SEC Insider Trading Case Over Drug Denial

A Boston executive agreed to settle SEC insider trading charges in a suit alleging he used confidential information about an FDA-rejected Sage Therapeutics Inc. drug to avoid nearly $20,000 in losses.

Brian Suthoff, the president of two private companies, obtained inside information from a Sage employee in June 2023 about the Food and Drug Administration’s partial rejection of the company’s depression drug Zuranolone, according to the Securities and Exchange Commission’s complaint filed Monday in the US District Court for the District of Massachusetts.

Suthoff sold his Sage shares after learning the FDA had struck references to major depressive disorder from ...