Biotech Firm Y-mAbs’ Leader Avoids Short-Swing Trading Liability

Y-mAbs Therapeutics Inc. founder Thomas Gad need not return $2.5 million in profits to the corporation under a federal court ruling Monday that resolves the case without a trial.

Gad’s receipt of Y-mAbs stock from another company in March 2021, in exchange for the latter’s stock, wasn’t a “purchase” triggering application of the Securities Exchange Act provision against short-swing trading, Judge Katherine Polk Failla said, addressing an issue new to the US District Court for the Southern District of New York.

The other company, WG Biotech ApS, was an investment vehicle created to fund Y-mAbs, according to the opinion.

The ...