SEC Widens Insider Trading Case Against FDA Chemist

Law360, New York (June 2, 2011, 7:42 PM EDT) -- The U.S. Securities and Exchange Commission on Thursday expanded its insider trading claims against a Food and Drug Administration chemist also facing criminal charges, adding allegations of another illegal stock deal.

In March, the SEC accused Cheng Yi Liang of trading on nonpublic information just before 27 FDA announcements regarding drug applications beginning in July 2006. An amended complaint filed on Thursday added another drug to the list — Horizant, a restless leg syndrome treatment developed by XenoPort Inc.

“Liang abused his position of trust with...
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