SEC alleges insider trading in Onyx ahead of Amgen news

July 3 Wed Jul 3, 2013 4:44pm EDT

July 3 (Reuters) - The U.S. Securities and Exchange Commission filed an insider trading lawsuit accusing unnamed defendants of making enormous profits by trading in Onyx Pharmaceuticals Inc call options before the drugmaker publicly rejected a takeover bid by Amgen Inc and put itself up for sale.

In a complaint filed in the U.S. District Court in Manhattan, the SEC said the trades generated more than $4.8 million of profit, including a collective return of more than 14,200 percent on options bought between June 26 and 28.

The SEC said it believes that the defendants are in, or trading through accounts in, the Canary Islands and Beirut.

On Sunday, Onyx rejected a roughly $10 billion unsolicited takeover bid from Amgen but said it would consider selling itself. Its shares soared more than 51 percent on Monday.

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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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