On June 9, 2025, the U.S. District Court for the Northern District of California entered final judgments against San Francisco-based startup NDB, Inc. and its CEO, Nima Golsharifi, in a case brought by the U.S. Securities and Exchange Commission (SEC). The case is a reminder that even in the fast-moving world of private startup fundraising, false statements to investors will not go unchecked. If you know of corporate wrongdoing, contact an SEC whistleblower lawyer as soon as possible.
The SEC’s Allegations
According to the SEC, NDB and Golsharifi raised over $1.2 million from investors following the release of a materially misleading August 2020 company press release. The press release falsely claimed that NDB’s so-called nuclear battery technology had been successfully tested at two well-known laboratories in the United States and United Kingdom. It also falsely claimed that NDB had signed its first two beta customers.
At the time of the press release, these representations were false. No laboratory tests had taken place, and no beta customer agreements existed. The SEC alleged that these false statements induced investors to commit over $1.2 million to the company.
Without admitting or denying the allegations, NDB and Golsharifi consented to final judgments including a total of $300,000 in civil penalties, and a two-year ban prohibiting Golsharifi from (1) serving as an officer or director of a public company or (2) participating in the issuance, purchase, offer, or sale of securities, other than for personal accounts.
Broader Implications
This case highlights the SEC’s continued focus on accountability in private markets, not just public companies. The SEC has demonstrated it will pursue enforcement actions when startups and their executives mislead investors through false public statements. Startup founders and private companies face the same core obligation as public companies: material statements to investors must be truthful and substantiated.
As private markets continue to attract significant capital from retail and institutional investors alike, this enforcement trend will likely intensify. The SEC’s enforcement priorities under the second Trump administration have focused heavily on outright fraud, like that at issue in the NDB case.
Protecting Integrity in the Markets
At King & Siegel LLP, we represent employees and whistleblowers who report corporate misconduct to the SEC and other regulators. We have extensive experience guiding clients through the SEC whistleblower process, including helping them obtain financial awards for exposing securities fraud and protecting them from retaliation.
How We Help SEC Whistleblowers Protect Themselves and Maximize Impact
At King & Siegel LLP, we represent whistleblowers who report corporate misconduct to the SEC and other regulators. We are one of the few firms that offers a true one-stop solution for these cases. We help you prepare and submit a successful SEC whistleblower tip; pursue an SEC award if your tip leads to monetary sanctions; and we aggressively protect you from retaliation, by pursuing retaliation claims under the Dodd-Frank Act, Sarbanes-Oxley Act, and applicable state laws.
If you are considering reporting misconduct, contact us as early as possible. Ideally, you speak to a skilled SEC whistleblower lawyer while still employed and as soon as you become aware of the wrongdoing. Early legal advice can help you document misconduct properly, preserve your legal claims, and avoid common mistakes that could jeopardize your case or your career.
We have a proven track record representing corporate insiders, compliance officers, financial professionals, and other employees in complex whistleblower matters across industries. We represent whistleblowers nationwide, and we offer free, confidential consultations. If we take your case, we work on contingency—you pay nothing unless we recover for you.
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If you have information about corporate misrepresentations or securities law violations, our experienced whistleblower attorneys can help you evaluate your options and protect your rights.
Julian Burns King graduated with honors from Harvard Law School and founded King & Siegel in 2018. As head of the Firm’s discrimination and harassment practice areas, she champions the rights of working parents and victims of workplace discrimination and harassment. She has been recognized as a “Rising Star” by Super Lawyers annually since 2018 and has recovered tens of millions of dollars on behalf of her clients.