Former Pharma Executive Implicated in $38M Insider Trading Scheme, Federal Authorities Claim
21 that Humanigen planned to seek emergency-use authorization for the drug, the release stated. However, over the next two months, FDA staff informed the company that it was unlikely to meet the criteria for emergency-use authorization, federal prosecutors said.
Despite this non-public information, Chappell sold the funds’ Humanigen stock holdings and made plans to trade more shares. When Humanigen publicly disclosed that the FDA had denied approval for Lenzilumab, the company’s stock price dropped by about 50%, authorities said.
Chappell was arrested on December 20 in Switzerland, and federal officials are working to have him extradited to the United States for trial, the office stated.
U.S. Attorney Philip R. Sellinger emphasized, “Our office is committed to holding accountable those who profit based on insider information. Combatting securities fraud and protecting market integrity remains a priority for this office.”
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