Two biotech leaders are facing the possibility of decades in prison after a federal grand jury in Maryland found them both guilty on multiple charges related to a scheme to defraud investors about the potential of the drug leronlimab, a monoclonal antibody investigational drug also known as PRO 140.
CytoDyn’s former CEO Nader Pourhassan drew attention over the last two years for loudly touting leronlimab as an effective treatment for HIV, cancer and Covid-19, despite clinical data that indicated the opposite.
A federal grand jury indicted Pourhassan, as well as the president of the company that managed the biotech’s clinical trials, on charges of lying to the public and investors about data behind its drug trials and the status of its biologics license application (BLA) in a scheme to raise its stock price.
Pourhassan and Kazem Kazempour, the co-founder, president, and CEO of Amarex Clinical Research, have both been charged with one count of conspiracy to commit securities fraud and wire fraud, three counts of securities fraud, and two counts of wire fraud related to an HIV BLA scheme.
Both Pourhassan and Kazempour have caught additional charges for other alleged conspiracies.
Pourhassan has been charged with another count of securities fraud and an additional count of wire fraud related to a COVID-19 scheme also involving the drug leronlimab, and three counts of insider trading.
Kazempour was additionally charged with one count of making false statements to federal law...
Over the last year, beyond traditional healthcare and federal procurement matters, the government has pursued federal False Claims Act (FCA) investigations and enforcement across high-risk areas, i...