On June 23, 2025, the first-ever prosecution for bad-faith use of 10b5-1 trading plans resulted in Terren Scott Peizer, the former CEO and executive chairman of the publicly traded company Ontrak, Inc., being sentenced to 42 months in prison and ordered to pay $17.9 million in fines and restitution. A California federal district court found that Peizer had entered into Rule 10b5-1 plans in bad faith and while in possession of material nonpublic information to avoid more than $12.5 million in losses related to the termination of a large customer contract.

The Central District of California recently shut down, on preemption grounds, a group of class-action plaintiffs’ second attempt to assert claims alleging that benzoyl peroxide (BPO) in over-the-counter (OTC) acne treatments unavoidably degrades into the carcinogen benzene.