Home / Crime and Justice / Ex-Biotech CEO Accused of $7.6M Vaccine Insider Trading
Ex-Biotech CEO Accused of $7.6M Vaccine Insider Trading
16 Jan
Summary
- Former CEO allegedly profited $7.6 million from stock sales.
- He sold shares before contaminated vaccine batch news broke.
- Company Emergent BioSolutions settles for $900,000.
New York's Attorney General Letitia James has initiated a lawsuit against Robert G. Kramer, the former chief executive of Emergent BioSolutions. The suit alleges Kramer committed insider trading, making an illicit profit of $7.6 million by selling company stock. This occurred before the public was aware that millions of doses of a Covid-19 vaccine, manufactured by Emergent, were contaminated.
Kramer allegedly possessed knowledge of systemic issues with the vaccine production while exercising his stock options. This news led to a significant drop in Emergent's stock price after production had to be suspended due to the compromised vaccine batches. As part of a settlement, Emergent BioSolutions will pay $900,000 to New York State and implement enhanced insider trading policies.
Kramer's legal team has refuted the claims, calling the lawsuit baseless and an overreach, asserting that Kramer adhered to all federal rules and company procedures. The lawsuit claims Kramer violated New York's stock fraud law. Emergent BioSolutions, based in Gaithersburg, Maryland, was a key contractor for the government's pandemic response, tasked with manufacturing millions of vaccine doses.
