SEC Sues 8 For Insider Trading In Sanofi, Chattem Deal

Law360, New York (August 28, 2012, 8:52 PM EDT) -- The U.S. Securities and Exchange Commission on Tuesday sued several Georgia men who allegedly traded ahead of Sanofi-Aventis Inc.'s purchase of Tennessee-based drug company Chattem Inc. using information from a Chattem board member’s accountant.

The SEC says Thomas Melvin, a Griffin, Ga., accountant for a Chattem board member, tipped a group of associates in 2009 about the company's then-upcoming sale to Sanofi. The eight insider traders made $500,000 profit trading in Chattem, which sells over-the-counter pharmaceuticals Allegra, Gold Bond and Icy Hot.

“It is particularly troubling...
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