Boston Executive to Settle SEC Insider Trading Case

Charges allege use of confidential info about FDA rejection of Sage Therapeutics drug

Jan. 27, 2026 at 3:47pm

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A Boston executive named Brian Suthoff has agreed to settle SEC insider trading charges. The charges allege that Suthoff, who is the president of two private companies, obtained confidential information in June 2023 from a Sage Therapeutics employee about the FDA's partial rejection of the company's depression drug Zuranolone. Suthoff then allegedly sold his Sage shares to avoid nearly $20,000 in losses after learning the FDA had struck references to major depressive disorder from the drug's label.

Why it matters

This case highlights the ongoing challenges regulators face in policing insider trading, particularly among executives and insiders who have access to confidential corporate information. The SEC is tasked with maintaining the integrity of financial markets by cracking down on those who seek to profit from non-public knowledge.

The details

According to the SEC's complaint, Suthoff obtained the inside information about the Zuranolone drug rejection from a Sage Therapeutics employee and then sold his Sage shares to avoid losses of nearly $20,000 after the FDA's decision became public. The SEC alleges that Suthoff's actions violated federal securities laws prohibiting insider trading.

  • In June 2023, Suthoff allegedly obtained confidential information from a Sage Therapeutics employee about the FDA's partial rejection of the company's depression drug Zuranolone.
  • Suthoff then allegedly sold his Sage shares after learning the FDA had struck references to major depressive disorder from the drug's label.

The players

Brian Suthoff

The president of two private companies who is accused of using confidential information to avoid losses in Sage Therapeutics stock.

Sage Therapeutics, Inc.

A biopharmaceutical company that had a depression drug, Zuranolone, partially rejected by the FDA in 2023.

U.S. Securities and Exchange Commission (SEC)

The federal agency that filed the insider trading charges against Suthoff and is tasked with maintaining the integrity of financial markets.

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What’s next

The SEC's complaint against Suthoff is pending in the U.S. District Court for the District of Massachusetts. The court will determine the final settlement terms and any penalties Suthoff may face.

The takeaway

This insider trading case underscores the importance of robust regulations and enforcement to maintain trust and transparency in financial markets, especially when it comes to the handling of sensitive corporate information by executives and insiders.