WASHINGTON (AP) — Federal regulators have expanded their
civil insider-trading charges against a chemist with the FDA accused of using
confidential FDA information on pending drug approvals to profit from trades of
drug companies’ stock.
The Securities and Exchange Commission said Thursday it
filed a revised civil lawsuit against Cheng Yi Liang, alleging he illegally
traded in advance of a public announcement on FDA approval of XenoPort Inc.’s
Horizant. That was the 28th announcement the SEC says Liang traded ahead of, in
addition to the 27 cited in the agency’s suit filed in federal court on March
Horizant was developed to treat restless leg syndrome. Liang
made over $126,000 in profits on XenoPort’s stock, the SEC said. He is accused
of making a total $3.6 million in the scheme.