SEC Drops Fraud Claims against Biopure GC

The SEC resolved an action brought against Biopure Corporation and its General Counsel with the entry of a consent decree enjoining the company from future violations of the antifraud and reporting provisions of the federal securities laws, General Counsel Jane Kober from aiding and abetting violations of the reporting provisions, and requiring Ms. Kober to pay a $40,000 fine. See SEC v. Biopure Corporation, et al., Civil Action No. 05-11853-PBS (D. MA)  The consent decree also requires the company to retain an independent consultant to review its disclosure and to adopt the recommendations of the consultant.  The SEC’s complaint alleged that the company failed to disclose negative information it received from the FDA regarding the approval of its synthetic blood product or falsely disclose the information as positive results.  The SEC dismissed the antifraud charges against Ms. Kober.