Its moving in the wrong dirrection.
SEC Files Suit Vs 7 In Cephalon
Insider Trading Case
Dow Jones Newswires
WASHINGTON -- The Securities and Exchange Commission
filed suit against seven individuals, including an associate
professor of neurology at Columbia University's College of
Physicians and Surgeons, alleging insider trading in the
stock of Cephalon Inc. (CEPH), a pharmaceutical
development company.
In a complaint filed in U.S. District Court in Phildelphia, the
SEC alleged the trading occurred before a June 10, 1995,
Cephalon public announcement about favorable test results
involving Myotrophin, a drug the company developed to treat
people with Lou Gehrig's disease. Cephalon is based in West
Chester, Penn.
The complaint alleged Dale Lange, a clinical investigator for
the company and Columbia University associate professor,
made an illegal profit of $26,496. His attorney said Lange
"believes the complaint is unfounded as a matter of fact and
law and intends to contest it."
The SEC also accused Philip Portoghese, a member of the
company's scientific advisory board, and his sons Stuart and
Stephen; Frank and Mark Lepore, officers of a graphic arts
company retained to prepare materials on the test results;
and Timothy Garner, a former Cephalon employee.
Without admitting or denying the SEC's allegations, Frank
and Mark Lepore and Garner agreed to refrain from future
violations of the securities laws. Frank Lepore also agreed to
disgorge $25,737 in profits and to pay a civil penalty of the
same amount. Mark Lepore agreed to disgorge $15,084 and
pay a civil penalty of the same amount. Garner agreed to
disgorge profits of $4,656. The SEC didn't seek a civil penalty
based on his inability to pay.
An attorney for Garner declined comment. Attorneys
representing the other five defendants couldn't be reached.
In a statement, Cephalon noted it was not a party to the
SEC's complaint and has cooperated fully with the SEC's
investigation. Frank Baldino, Cephalon president and chief
executive officer, said: "We maintain a strong policy against
unlawful insider trading and expect our employees,
consultants, and others associated with the company to
adhere to that policy. We support the SEC in its enforcement
of insider trading rules." |
