By IB Times Staff Reporter: Subscribe to IB's RSS feed
September 2, 2010 12:40 PM EDT
The insider trading case involving the 2007 takeover of biotechnology company MedImmune by AstraZeneca has been settled, U.S. Securities and Exchange Commission said on Wednesday.
A former hedge fund manager and an executive of a drug company, who were charged by federal investigators, have agreed to pay a fine besides returning illegal profit made by trading MedImmune securities, SEC said in a statement.
Federal authorities had alleged that Stephen R. Goldfield, who ran a hedge fund firm called Imperium Capital Management, had made $13.98 million by trading in MedImmune securities during the days leading up to AstraZeneca's acquisition of the company.
Goldfield's friend and co-defendant James W. Self Jr was accused of tipping Goldfield off about the MedImmune sale process.
The deal price had valued MedImmune shares at more than $58 while the shares were actually trading in the mid 30s.
According to reports, neither Goldfield nor Self admitted, nor denied, the allegations but agreed to refrain from future violations of the securities law, besides paying the penalties.
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According to the SEC, though Goldfield's settlement was $16.65 million, he was let off with a penalty of only $600,000 as he had lost all his ill-gotten money trading index put options.
Self agreed to pay a civil fine of $50,000, says the SEC statement.
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