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    Former FDA Deputy Director Charged With Insider Trading for Leaking Non-Public Approval Information

    A former Deputy Director of the US Food and Drug Administration’s (FDA) Office of Generic Drugs (OGD) was charged on Wednesday for providing tips on drug approvals to three hedge fund managers that made tens of millions off of the non-public information. The Securities and Exchange Commission (SEC) announced the charges of insider trading against two hedge fund managers and their source, Gordon Johnston, who worked for a dozen years at FDA and leaked approval in...
  • Supreme Court Prepares to Hear Amgen's Challenge to Securities Fraud Lawsuit

    • 12 June 2012
    The Supreme Court of the United States (SCOTUS) said it agreed to hear a challenge from life sciences manufacturer Amgen regarding a lawsuit alleging the company inflated its stock price by misleading investors about the safety of its anemia drugs, Aranesp and Epogen. Amgen is reportedly contesting the class-action nature of the lawsuit, which it says could have the perverse effect of placing severe financial pressures on companies if allowed to stand. "At issue," expla...
  • Pfizer Executives Sued Under Securities Laws for Allegedly Concealing Clinical Trials Results

    • 02 April 2012
    A federal judge refused to dismiss a case against Pfizer and five former executives for allegedly violating federal securities law by concealing clinical trial results, reports The Courthouse News Service . The class action lawsuit, filed by the Teacher's Retirement System of Louisiana, accuses the company and executives of violating federal securities laws by omitting the results of unfavorable clinical trials from public filing statements made by Pfizer. The defendan...
  • Chemist Sentenced to Prison for Insider Information

    A chemist formerly employed by the US Food and Drug Administration (FDA) was sentenced 5 March to five years in prison after using insider information to earn $3.78 million , reports Bloomberg . The chemist, Cheng Yi Liang, formerly of FDA's Center for Drug Evaluation and Research (CDER), pled guilty last year to one count of securities fraud and one count of making false statements. According to court document, Liang used his position inside FDA to make trades based...