Executives at Celgene Corp., Sanofi and Stryker Corp. were among six people charged for their roles in a health-care stock insider-trading ring that prosecutors said generated $1.48 million in illicit profit.
John Lazorchak, 42, director of financial reporting at Celgene, regularly tipped others to nonpublic information on acquisitions, quarterly earnings results and regulatory news, according to a Federal Bureau of Investigation complaint filed yesterday in federal court in Newark, New Jersey.
They also involved six quarterly earnings announcements by Celgene, and the company’s announcement in June that it was withdrawing an application in Europe for expanded use of its blood cancer drug Revlimid, according to the government.
“It is our understanding that the investigation involved only one employee and not the company itself,” he said in a statement. “Celgene is currently exploring its legal remedies. The actions taken by this employee violate Celgene’s values, guiding principles and formal policies.”