Howard Richman, the former chief of regulatory affairs for Biopure, agreed to pay a $150,000 fine to settle federal charges that he had helped mislead investors in the company over the prospects of the blood substitute Hemopure at the FDA. Richman was barred from serving as an officer or director of a public company but did not admit or deny any of the allegations in the settlement. Three other company officials and Biopure had already settled with the SEC.
The charges stem from the company's statements to investors in 2003. Biopure had maintained that the company had received "good news" from the FDA, concealing the fact that the agency had rejected Hemopure and halted trials due to safety concerns. That misdirection, the SEC charged, caused the stock to rise 20 percent. The company raised $35 million from investors before the news got out, sending its stock down 66 percent.
- read the report from the Wall Street Journal