The former CFO for Immunomedics, who helped guide the biopharmaceutical company to its $21 billion buyout by Gilead Sciences last year, was arrested Dec. 1 and charged with securities fraud, according to the Justice Department.
Prosecutors allege Usama Malik, who served as CFO of Immunomedics from 2018 through October 2020, when the company was acquired by Gilead, tipped off several people to the success of Immunomedics' breast cancer drug before the information was publicly available. He allegedly shared material information about the drug with others before it was announced April 6, 2020, that the drug had proven effective in pre-market trials.
Mr. Malik allegedly shared non-public information about the drug with Lauren Wood, who lived with Mr. Malik and previously served as head of corporate communications for Immunomedics. Ms. Wood bought 7,000 shares of Immunomedics' stock after allegedly receiving the information. After selling the shares, Ms. Wood doubled her investment. She was also arrested and charged with securities fraud Dec. 1, according to the Justice Department.
Prosecutors further allege that Mr. Malik shared information that wasn't publicly available with several of his relatives.
Mr. Malik and Ms. Wood face up to 20 years in prison and a $5 million fine, according to the Justice Department.