Array BioPharma employee's husband accused of making $90K from insider trading before Pfizer buy
19 Oct 2023
AcquisitionPatent Infringement
Preview
Source: FierceBiotech
In criminal court, a securities fraud charge can carry a prison sentence of up to 20 years.
An Array BioPharma investor is facing insider trading allegations, with criminal and civil cases accusing him of unlawfully trading stock options after learning from his wife—an Array employee—that Pfizer might acquire the biotech. The alleged actions resulted in a profit of $90,458.
The charges, from both the Securities and Exchange Commission (PDF) and the U.S. Attorney’s Office for the Northern District of Illinois (PDF) have been made against Brian Marc Rubin, 51, of Illinois.
The cases stem back to 2019, right before Pfizer bought the cancer drug specialist via tender offer. Rubin’s spouse—an account director for Array’s Midwest operations at the time—had learned of the potential acquisition and told Rubin about it in confidence, according to the criminal charges. Through the Array job, Rubin’s wife provided her family with a stable income and health insurance benefits, and she was concerned that if Array was acquired, she would lose her job, according to case filings.
At the time, Rubin was unemployed but had previously worked as an options trader, according to SEC documents.
Unbeknownst to his wife, Rubin then allegedly traded Array stock options based on the nonpublic information before the deal had been announced. After the acquisition closed and became public, the biotech company’s stock price increased and he then exercised the options for the profit, according to the charges.
According to the SEC, Rubin has agreed to enter a judgment—pending court approval—that would permanently bar him from violating certain antifraud provisions, order him to pay back the $90,458 plus $16,914 in interest and order him to pay a civil penalty in an amount to be later determined by the court.
Meanwhile, in criminal court, Rubin has been charged with one count of securities fraud, which can carry a prison sentence of up to 20 years. An arraignment hasn’t been scheduled yet.
For more details,please visit the original website
The content of the article does not represent any opinions of Synapse and its affiliated companies. If there is any copyright infringement or error, please contact us, and we will deal with it within 24 hours.
Organizations
Indications
Targets
-Drugs
-Hot reports
Get started for free today!
Accelerate Strategic R&D decision making with Synapse, PatSnap’s AI-powered Connected Innovation Intelligence Platform Built for Life Sciences Professionals.
Start your data trial now!
Synapse data is also accessible to external entities via APIs or data packages. Leverages most recent intelligence information, enabling fullest potential.