2024-12-16 18:56:00
The Financial Markets Authority denounces “price manipulation by setting the price at an abnormal or artificial level and resulting from the sale of securities at the close of the market”.
The American management company EcoR1 Capital and its manager were fined 10 million euros by the Sanctions Commission of the Financial Markets Authority (AMF) for “price manipulation” on the stocks of French biotech Innate Pharma in October 2019. The Sanctions Commission specifies that the decision may be subject to appeal, in the press release published by the AMF on Monday. This follows requests from the AMF College representative on November 7, who called for sanctions of 7 million euros against EcoR1 Capital and 3 million euros against its founder Oleg Nodelman, an American investor.
On June 12, 2019, Innate Pharma announced plans to list on the Nasdaq via an American Depositary Share (ADS), a tradable security that allows foreign companies to list on American markets. The French stock exchange supervisor had in particular criticized EcoR1, a shareholder of Innate Pharma, for having carried out sales of Innate Pharma shares considered massive, at the end of the trading session, which had the effect of lowering the price by “approximately 14% during a precise five-day period which was decisive in setting the listing price of the French biotech on the New York Stock Exchange.
According to the AMF Sanctions Commission, “the operations carried out by EcoR1 on Euronext Paris, which had the effect of lowering the closing price of the Innate Pharma stock over the course of the five sessions and, consequently, of lowering the subscription price of the ADSs on the Nasdaq, were constitutive of “price manipulation” by setting the price at an abnormal or artificial level and resulting from the sale of securities at the close of the market”. Again according to the commission, this “failure” East “attributable to Mr. Nodelman”the leader.
#authorities #impose #fine #million #euros #American #management #company #EcoR1