WASHINGTON (AP) -- Federal regulators have expanded their civil insider-trading charges against a chemist with the Food and Drug Administration accused of using confidential FDA information on pending drug approvals to profit from trades of drug companies' stock.
The Securities and Exchange Commission said Thursday it filed a revised civil lawsuit against Cheng Yi Liang, alleging he illegally traded in advance of a public announcement on FDA approval of XenoPort Inc.'s Horizant. That was the 28th announcement the SEC says Liang traded ahead of, in addition to the 27 cited in the agency's suit filed in federal court on March 29.
Horizant was developed to treat restless leg syndrome. Liang made over $126,000 in profits on XenoPort's stock, the SEC said. He is accused of making a total $3.6 million in the scheme.
