New York – The state’s Attorney General Letitia James has filed charges against Robert G. Kramer, former CEO of Emergent BioSolutions, for alleged insider trading that netted him over $10 million.
Kramer is accused of selling his company shares just ahead of the revelation of contamination issues in the production of AstraZeneca’s COVID-19 vaccine, which was being produced by Emergent at the time. The lawsuit states that Kramer sold his shares before the public learned of the problems, violating New York’s Martin Act.
According to the Attorney General’s Office, Emergent entered into a contract worth $261 million with AstraZeneca in 2020 to produce the vaccine. However, manufacturing issues at Emergent’s plant led to large batches of contaminated vaccines being discovered, rendering them unusable.
The lawsuit claims that Kramer knew about the contamination and sold his shares on October 13, 2020, after receiving information from a senior executive about aborted batches. He then asked his investment advisor to implement a stock trading plan, which allowed him to sell some of his Emergent stock at predetermined dates and prices.
The investigation also revealed that Emergent approved Kramer’s trading plan on November 13, 2020. In response to the allegations, Emergent has agreed to pay $900,000 in penalties for approving Kramer’s illegal trading plan and is required to improve its executive trading policies.
Attorney General James emphasized that executives using insider information to profit at the expense of the public trust will be held accountable. ‘Kramer’s actions were illegal and unethical,’ she said, ‘and we are holding him responsible for his actions during a global pandemic when people relied on safe vaccines.’
Key Facts
- State: New York
- Agency: NY AG
- Category: White Collar Crime|Public Corruption
- Source: Official Source ↗
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