Action against Defendants, a biotech startup, its founder and CEO, its employee, and Defendant founder’s friend.  According to the SEC, Defendants company, founder, and employee made false statements to investors about their progress in seeking FDA approval for a treatment, the amount of money Defendant company had raised, and a takeover bid of a company that Defendant founder had previously led.  In addition, the SEC alleges that Defendants founder, friend, and employee engaged in a fraudulent scheme to acquire and merge Defendant company with a publicly traded company and manipulate sale of shares in the new entity.

SEC Litigation Release