A McGuireWoods team secured a new trial for a former biotech executive by establishing for the court that his convictions in a complex securities fraud case resulted from the prejudicial spillover of evidence that applied only to his co-defendant.
In a Jan. 16, 2026, order, U.S. District Judge Paula Xinis of the District of Maryland granted Dr. Kazem Kazempour’s motion for a new trial and vacated the two counts on which he was convicted at the original trial. Dr. Kazempour is the former CEO of Amerex, a contract research organization with specialized experience assisting companies seeking FDA approval to market new drugs.
Dr. Kazempour stood trial in 2024 on an eight-count indictment. He was tried along with his co-defendant, Nader Pourhassan, the former CEO of CytoDyn, a publicly traded company that was developing a drug called Leronlimab. The Department of Justice alleged Pourhassan and Kazempour engaged in a conspiracy relating to providing false information to the investing public regarding the status of obtaining FDA approval for Leronlimab, including for use in treating HIV/AIDS and COVID-19. After a multi-week trial, jurors acquitted Dr. Kazempour of conspiracy and multiple other counts but convicted him on a single count each of securities fraud and wire fraud.
In granting Dr. Kazempour’s motion for a new trial, Judge Xinis concluded he was prejudiced by being tried alongside Pourhassan, who, unlike Kazempour, was charged with several counts of insider trading. Dr. Kazempour repeatedly moved for severance before trial and was denied.
“A joint trial with Pourhassan unfairly confused the jury and prejudiced Kazempour such that the jury likely convicted him on an insider trading theory, even though he had not been charged with insider trading,” Judge Xinis wrote in her opinion.
Judge Xinis further held that the prejudice was “compounded” by government testimony presented at trial and by its opening and closing arguments, in which the prosecutors repeatedly described or characterized Kazempour as an “insider.” The judge also noted that “the risk that Kazempour’s verdict suffered from unfair, prejudicial spillover is even greater when considering that the evidence against Kazempour was otherwise thin.”
McGuireWoods’ Jason Cowley, Caroline Schmidt Burton, Grace Greene Simmons, Roy G. Dixon III, Elizabeth Peters, V. Kathleen Dougherty, Justin Givens and Joie Johnston represented Kazempour at trial and in the post-trial briefing. Former McGuireWoods lawyers Ben O’Neil and Clare Reardon also represented Dr. Kazempour at trial.
“We are grateful for the court’s thorough and careful consideration of this issue and look forward to vigorously contesting the remaining charges at a new trial free of unfair prejudice,” said Cowley, who is also the chair of McGuireWoods’ nationally recognized Government Investigations & White Collar Litigation Department and a former federal prosecutor.
Burton, who co-led the trial team, added: “It is our great privilege to represent Dr. Kazempour, and we are excited for this significant step towards clearing his good name. We are grateful to our wonderful team for all their hard work and perseverance before, during, and after the initial trial.”
McGuireWoods has represented individuals, Fortune 100 companies, and financial institutions in some of the most notable and complicated criminal, regulatory, and investigative matters in recent years. The firm earned top accolades from Chambers USA, Legal 500 United States, Global Investigations Review and Law 360 for its government investigations and white collar litigation prowess.