Drug Co. Lied About $245M Buyout Offer, SEC Claims

Law360, New York (December 18, 2012, 1:48 PM EST) -- The U.S. Securities and Exchange Commission hit Spencer Pharmaceutical Inc. with a suit in Massachusetts federal court Monday, accusing the drug company of a pump-and-dump scheme in which Spencer’s officers spread fictitious reports of a forthcoming $245 million buyout to inflate stock prices.

The agency’s complaint says the scheme was orchestrated by Spencer directors Jean-Francois Amyot, Maximilien Arella and Ian Morrice, who allegedly began disseminating false press releases in November 2010 claiming a Mideast company had made an unsolicited bid to buy Spencer.

The trio collaborated...
To view the full article, register now.