A Collaboration with the University of Pittsburgh

SEC settles ImClone insider trading charges for $2.77 million

[JURIST] Two friends of jailed ex-ImClone CEO Sam Waksal have settled insider trading charges [press release] brought by the US Securities and Exchange Commission [official website] by agreeing to pay $2.77 million to cover their avoided losses. Zvi Fuks and Sabina Ben-Yehuda sold their ImClone [corporate website; JURIST news archive] shares after Waksal told them the company's new drug was likely to be rejected by federal regulators. Fuks will pay $2.66 million and Ben-Yehuda will pay $110,000, the amounts they avoided losing by selling the stock before its value dropped. Criminal complaints against the two were dropped in August, but the new settlement must still be approved by a judge. Bloomberg has more.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.