Health Law & Business News

OPKO Health Sued Over CEO’s Alleged Pump-and-Dump Scheme

Jan. 2, 2019, 7:27 PM

Pharmaceutical firm OPKO Health Inc. faces a shareholder derivative suit over allegations that its CEO used company information for a $27 million pump-and-dump scheme.

CEO Phillip Frost helped run a stock scam that used his connection to OPKO to make the pump-and-dump transactions look legitimate, harming the company, according to an investor complaint filed Dec. 31 in the U.S. District Court for the Southern District of Florida.

Frost agreed to settle a related Securities and Exchange Commission suit for just over $5.5 million in disgorgement and fines Dec. 27. The settlement, in which Frost didn’t admit wrongdoing, is subject to...

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