NEWARK, NJ: Lauren Wood, former corporate communications head at biopharmaceutical company Immunomedics, pleaded guilty this month to her role in an insider trading scheme, U.S. Attorney Philip Sellinger said in a statement.
Wood’s ex-boyfriend, then-CFO of Nasdaq-listed Immunomedics, Usama Malik, provided Wood with information about the company's new breast cancer drug, telling her the treatment had proven effective in pre-market clinical trials before the public announcement on April 6, 2020, according to a statement from the Justice Department.
Wood purchased 7,000 Immunomedics shares, despite financial experts' bearish stock-market valuation at the time. She sold the stock three months later for a $213,618 profit, more than doubling her investment, after the announcement of the company’s effective cancer drug, according to the DOJ.
Gilead Sciences acquired Immunimedics later in 2020 for $21 billion.
Wood faces up to 20 years in prison and a $5 million fine. Sentencing is scheduled for November 21. The Securities and Exchange Commission has also filed a civil complaint.
Malik pleaded not guilty on May 19 to insider trading, securities fraud and conspiracy charges, according to Reuters. He is currently free on bail.