New York Attorney General Letitia James announced a lawsuit against Robert G. Kramer, the former CEO of health care contractor Emergent BioSolutions (EBS) for insider trading, and announced a settlement with Emergent for approving Kramer’s illegal trading plan. In 2020, Emergent entered into $261M in contracts with AstraZeneca (AZN) to manufacture a large-scale commercial supply of its COVID-19 vaccine. Emergent later encountered manufacturing issues at its plant and discovered that large amounts of the AstraZeneca vaccines it produced were contaminated and unusable. An investigation by the Office of the Attorney General found that amid these contamination issues, Kramer executed a plan to sell his company shares and received more than $10M before the contamination issues were made public, in violation of New York’s Martin Act. As a result of a settlement with OAG, Emergent will pay $900,000 in penalties and improve its executive trading policies. Attorney General James is seeking damages, disgorgement, and costs from Kramer.
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