New York Attorney General Letitia James has filed a lawsuit against Robert G. Kramer, the former CEO of health care contractor Emergent BioSolutions, Inc., charging him with insider trading. Kramer is accused of selling his company shares for over $10 million before contamination issues with the production of the AstraZeneca COVID-19 vaccine became public.
Emergent BioSolutions was contracted by AstraZeneca to produce a large-scale supply of the COVID-19 vaccine, securing contracts worth $261 million. However, manufacturing difficulties and contamination were discovered later, compromising the vaccine’s effectiveness. Kramer’s alleged actions occurred amidst these issues.
The lawsuit claims that Kramer knew about the problems and sold his shares on October 13, 2020, just a day after Emergent concluded that multiple batches of vaccines were likely lost due to contamination. He was later approved by the company to execute this trading plan. Emergent itself has settled with the Office of the Attorney General for $900,000, improving its executive trading policies.
Attorney General James emphasized the betrayal of public trust: “Corporate executives who use insider information to illegally trade company stocks and make a profit betray the public’s trust. Kramer’s actions were illegal and unethical.”
The investigation revealed that Emergent was discussing the importance of its AstraZeneca contract while omitting the serious contamination issues. Kramer, now faces damages, disgorgement, and costs in addition to the legal repercussions.
This case underscores the serious consequences for those who exploit insider information during times of public health crises, serving as a stark reminder of the ethical and legal obligations of corporate leaders.
RELATED: Emergent BioSolutions Ex-CEO Robert Kramer Accused of $10M Insider Trading Scam
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Key Facts
- State: New York
- Agency: NY AG
- Category: Public Corruption|White Collar Crime
- Source: Official Source ↗
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