Health Law & Business News

OPKO Health to Pay $16.5 Million, Resolving Pump-and-Dump Claims

June 30, 2020, 2:14 PM

OPKO Health Inc. will pay $16.5 million to settle a securities fraud class action charging the company with a “pump and dump” scheme to inflate stock prices of companies in which OPKO or its CEO invested.

The settlement class is comprised of all persons or entities that acquired OPKO stock between Sept. 26, 2013, and Sept. 7, 2018. The plaintiffs allege there are “hundreds or thousands” of class members.

The complaint alleged that the company and then-CEO Phillip Frost manipulated the stock prices of developing healthcare companies, including BioZone Pharmaceuticals Inc. and MabVax Therapeutics, in which OPKO invested.

The plaintiffs...

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