SEC Charges Ontrak Chairman Terren Peizer With Insider Trading

The Securities and Exchange Commission today charged Terren S. Peizer, Executive Chairman of the Santa Monica, California-based healthcare treatment company Ontrak Inc., with insider trading for selling more than $20 million of Ontrak stock between May and August 2021 while in possession of material nonpublic negative information related to the company’s largest customer. According to the SEC’s complaint, prior to May 2021, when Peizer established a Rule 10b5-1 trading plan in the name of Acuitas Group Holdings, LLC, his investment vehicle, to sell Ontrak stock, he had learned that Ontrak’s relationship with its then-largest customer—representing more than half its revenue—was tenuous.