Posted on 06/08/2020 10:04:54 AM PDT by SeekAndFind
An anti-corruption watchdog group is urging the U.S. Securities and Exchange Commission to investigate top executives at Moderna, the biotech firm developing a promising coronavirus vaccine, for allegedly manipulating the stock market.
"This misconduct was particularly egregious because it involved not only financial fraud and manipulation of the financial markets, but also because it exploited widespread fears surrounding the ongoing COVID-19 pandemic," wrote Kyle Herrig, who heads Accountable.US, in a letter to the SEC. "I strongly urge the SEC to investigate these matters."
The group's concerns center on insider trading activity at Moderna after the company last month announced positive results in Phase 1 trials of its coronavirus vaccine. The news pushed up the company's stock price 30% to an all-time high of $87. In the days following the announcement, Moderna's CEO, other executives and funds controlled by the chairman of its board sold about $90 million worth of company shares.
Accountable.US sent its letter, a copy of which was provided to CBS MoneyWatch, on Tuesday to Joseph Sansone, who heads the SEC's market abuse unit. The agency declined to comment on the letter or whether it is looking into allegations against Moderna and its executives. Herrig said he hasn't received a response from the SEC.
Moderna on Wednesday defended the stock sales that aroused Accountable.US' suspicion.
"Executive sales are made under pre-planned 10b5-1 plans, which are executed during open trading windows in accordance with the company's insider trading policy," the company said in a statement to CBS MoneyWatch. "As a matter of practice, Moderna does not intend to comment on any alleged or potential litigation or investigation; nor on purchases or sales by individual investors or groups."
(Excerpt) Read more at cbsnews.com ...
About time, there are some other companies doing the same thing.
Good.
Some of us have posting to ignore the “This drug is wonderful bs after minimal usage!
You can bet that politicians have stock in the company.
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