On June 12, 2026, a federal judge in the Southern District of New York approved a settlement between the Securities and Exchange Commission and Mississippi resident Gerard Ryan, a retired New York Mercantile Exchange trader, in connection with securities trades made prior to a public announcement regarding the approval of a flagship drug. The settlement comes just days after the SEC filed civil insider trading charges against Ryan on June 4, 2026, for purchasing securities in biopharmaceutical company Kadmon Holdings Inc. following the impending approval of Rezurock, a drug intended to treat a serious complication that can occur after bone marrow or stem cell transplants. According to the SEC’s complaint, Ryan learned from his cousin – who worked as a Kadmon Holdings Immune Hematology Manager at the time – that the FDA had confidentially informed Kadmon of its plan to approve the drug. Ryan allegedly used this material nonpublic information to purchase approximately 16,480 shares of Kadmon stock and trade Kadmon options just two days before the company announced the drug’s approval on July 16, 2021. According to the SEC, Ryan also shared the MNPI with an unnamed friend who also purchased 2,250 shares of Kadmon stock before the announcement, allegedly resulting in approximately $9,260 in ill-gotten profits for Ryan and approximately $1,170 for his friend.
The SEC charged Ryan with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. On June 11, 2026, a proposed judgment was filed in the case, and, on June 12, 2026, the court approved the terms of a settlement in which Ryan agreed to be permanently enjoined from violating federal securities laws. The settlement also provides that any request for disgorgement, prejudgment interest, and/or a civil penalty will be determined by the court upon motion by the Commission. The parties also agreed to file a joint letter on the first of every other month to provide the court with updates regarding the status of the case, beginning on July 1, 2026.
On March 26, 2026, Ryan pleaded guilty to parallel criminal insider trading charges filed by the U.S. Attorney’s Office for Southern District of New York. He pleaded guilty to one count of securities fraud for his role in the scheme and admitted, among other things, that his cousin disclosed confidential Kadmon information that she was not permitted to share and that he knowingly used the information to purchase securities in breach of a duty of trust owed to his cousin. Ryan is currently scheduled to be sentenced in the criminal case on June 30, 2026.
Judgment | SEC Complaint | USAO SDNY Press Release – March 26, 2026 | Docket Minute Entry – Guilty Pleas