Dec 23 U.S. securities regulators have filed a
new lawsuit accusing two Dubai residents of illegally trading in
Onyx Pharmaceuticals Inc stock based on inside information, one
month after a federal judge dismissed an earlier version of the
The two defendants amassed "large, speculative and highly
leveraged" positions in both Onyx and Life Technologies Corp
that earned them profits of $3.7 million, the
Securities and Exchange Commission said in a new lawsuit filed
A Manhattan federal judge dismissed an earlier lawsuit
against the defendants, Dhia Jafar and Omar Nabulsi, and said
the SEC had not provided enough information to infer that the
pair had traded based on nonpublic tips.
But U.S. District Judge Paul Oetken said he would keep the
accounts that held the trading profits frozen for 30 days, and
allowed the SEC some extra time to file an amended complaint.
In the new lawsuit, the SEC added allegations involving
trading in Life Technologies, and provided additional details
about the trading.
Jafar and Nabulsi amassed the positions in each stock as
short term call options, among other financial instruments, the
Hours after they purchased the options, articles in Canada's
Financial Post newspaper revealed confidential information about
pending deals related to the two companies, the SEC said.
The pair traded in Life Technologies last January, and in
Onyx in June, the SEC said.
Jafar and Nabulsi's trading in Life and Onyx came as the two
companies were assessing takeover interest or considering a bid,
according to the SEC's allegations.
Thermo Fisher Scientific, Inc. agreed to acquire
Life Technologies in April, and Amgen, Inc. announced
it was acquiring Onyx in August.
A lawyer for Jafar and Nabulsi, Patrick Smith of DLA Piper,
did not immediately respond to a request for comment on the new
The case is SEC v. Dhia Jafar a/k/a Dhia Jaffar and Omar
Naulsi, U.S. District Court, Southern District of New York, No.