Robert Gadimian Charged with Insider Trading
The Securities and Exchange Commission (“SEC”) today charged the former senior director of regulatory affairs for Puma Biotechnology with insider trading ahead of the company’s news announcements about a drug to treat breast cancer.
The SEC alleges that Robert Gadimian pocketed more than $1.1 million in illicit profits by secretly purchasing Puma stock and short-term call options based on nonpublic information he learned about positive developments in two clinical trials for Puma’s drug, neratinib. Gadimian allegedly bought Puma securities before the results from the first trial were announced in December 2013, and again before the results of the second trial were announced in July 2014.
According to the SEC’s complaint, Puma confronted Gadimian after learning about his trades and he admitted to trading because of “greed.” Gadimian allegedly proceeded to alter his trading records before providing them to Puma for its internal investigation, deleting certain trades in Puma securities and renumbering the pages of the altered documents to hide his changes. Gadimian was fired in October 2014.
In a parallel case, the U.S. Attorney’s Office for the District of Massachusetts today announced criminal charges against Gadimian.
The SEC’s complaint, filed in federal court in Massachusetts, charges Gadimian with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
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