SEC Charges Former Array BioPharma Manager for Insider Trading

Jack Humphrey, Regulatory journalist
August 22, 2012 /

The US Securities and Exchange Commission filed a suit the United States District Court for the District of Colorado against James L. Lieberman for illegally trading the stock of a pharmaceutical firm.

In its complaint, the SEC alleges that Lieberman traded Array BioPharma, Inc. stock based on material nonpublic information about a pending transaction with Novartis, which he learned while working as Array’s manager of environmental health and safety.

Minutes after receiving an e-mail from Array’s chief financial officer informing him that a significant licensing transaction with Novartis was imminent, Lieberman placed orders to buy Array common stock in both his brokerage account and his sister’s account, over which he had trading authority.

In the weeks leading up to the public announcement of the transaction, Lieberman purchased nearly 50,000 shares of Array stock. After the public announcement on April 19, 2010, Lieberman sold all the shares in both accounts for profits of $71,361.

Without admitting or denying the allegations in the complaint, Lieberman consented to a final judgment ordering him to pay disgorgement of $71,361, plus prejudgment interest of $4,906; and ordering him to pay a one-time civil penalty in the amount of $71,361, for a total of $147,628.


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