The former chief financial officer for
Malik and Wood were both arrested Dec. 1 on securities fraud charges. They are scheduled to appear in federal court in Washington on Thursday afternoon.
A representative for Gilead declined to comment. Patrick Smith, a lawyer for Malik, and John Yauch, a federal public defender representing Wood, didn’t immediately respond to requests for comment.
According to prosecutors, Wood placed an order for about 7,000 Immunomedics shares based on Malik’s tip, selling them after the announcement of the clinical trial results for gross profits of more than $213,000. She allegedly gave $65,000 of the profits to Malik.
While the company was not identified by prosecutors, the Securities and Exchange Commission filed a separate lawsuit against Malik and Wood stating they worked for Immunomedics. The company developed a breast-cancer treatment called Trodelvy that gained approval from the U.S. Food and Drug Administration in April 2020.
According to the SEC, Malik failed to identify Wood as his romantic partner when asked about her trading as part of a Financial Industry Regulatory Authority inquiry. He also falsely claimed that he had not communicated with her during the relevant period, the regulator said.
Malik has worked as a director and chief executive officer of Fore Biotherapeutics since February. His employment was terminated on Thursday after the company became aware of the charges, Fore said in a statement.
The case is US v Malik, 21-mj-11371, U.S. District Court, District of New Jersey.
(Updates with attempt to reach defense lawyers.)
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