The agency alleges that Brooke Wagner, 44, a former vp of corporate communications at Indevus Pharmaceuticals, improperly relied on insider info when he sold shares of the biotech, which is based in Lexington, Ma., in May and June 2008. The SEC claims Wagner sold the stock after learning during a company conference call with the FDA that the agency planned to delay approval for Nebido, a testosterone replacement drug being developed by the company.
In its suit, the SEC claims the call took place on May 30 and that Wagner's trading occurred over the next few days. Ironically, he allegedly assembled Indevus employees three days later that no trading in Indevus stock should take place because it would violate securities laws. The agency alleges he avoided losses of $43,000 by selling the stock before the news was released publicly on June 4, but also pocketed $21,000 by selling short. The SEC is seeking a return of Wagner’s “ill gotten gains” plus interest and is also asking for a civil penalty to be levied against Wagner (here is the lawsuit). Indevus has since been acquired by Endo Pharmaceuticals (background).