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.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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