On June 21, 2024, the U.S. Department of Justice (DOJ) secured a conviction in a first-of-its-kind insider trading prosecution based exclusively on a corporate insider’s trades pursuant to a Rule 10b5-1 plan.

DOJ charged Terren S. Peizer, the former CEO and Chairman of the Board of Directors of Ontrak, Inc., in March 2023, alleging that he avoided losses of more than $12.5M by trading pursuant to two Rule 10b5-1 plans established while he was in possession of material nonpublic information (MNPI).