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Biopharmaceutical Company Charged with Misleading Investors

Posted on Aug 28, 2011

Earlier this month, the federal government charged Immunosyn, a biopharmaceutical company, with misleading investors. Additionally, the government charged four senior executives and three shareholders with securities fraud and three executives with insider trading.

The claims all relate to the one product developed by Immunosyn - a drug derived from goat blood that was intended to treat a variety of conditions.

According to the SEC, Immunosyn misled investors by stating in public filings that the controlling shareholder of the company planned to seek or had already sought US regulatory approval for human clinical trials related to the drug. Yet, according to the SEC, the filings failed to mention that the FDA had twice issued holds on clinical trials related to the drug and prevented them from occurring.

Additionally, the SEC claims that Immunosyn told some investors that the company was seeking approval for clinical trials in Europe, though it is alleged that the company never sought approval for those trials.
The SEC is seeking financial penalties against Immunsyn in relation this case.

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