The SEC today filed a settled injunctive action alleging insider trading against Brooke D. Wagner, former vice president of corporate communications at Indevus Pharmaceuticals. The SEC alleges that Wagner sold shares of Indevus stock upon learning in advance that the U.S. Food and Drug Administration (FDA) had expressed concerns about a potential side effect of a drug for which Indevus was seeking FDA approval, and, as a result, the approval process would be delayed by at least 18 months. According to the SEC’s complaint, when that information was disclosed, the closing price of Indevus stock fell $2.84 per share from the prior day’s closing price of $4.10 per share to $1.26 per share, a decline of 69%.
The SEC stated that Wagner has agreed to disgorge ill-gotten gains of $64,190.46, pay prejudgment interest of $4,741.57, and pay a civil monetary payment of $64,190.46.
