Legal, People

Akari CEO Horn Solomon ousted after allegedly abusing the company credit card

David Horn Solomon

For the second time in the last 12 months, Akari is abruptly losing its CEO amid scandal. David Horn Solomon has resigned after allegedly getting caught using the company credit cards for personal purchases.

That’s according to a sparsely worded SEC statement filed Friday, which states Horn Solomon resigned a few days ago on May 8 following an investigation by Akari $AKTX and an independent law firm. We don’t know how significant the charges are, but the statement said Akari “does not consider the amounts charged to be material to the company’s oeprations.”

Stepping up to take the reins is Clive Richardson, Akari’s COO and board member, who will lead as interim CEO while the company looks for a full-time chief executive.

Gur Roshwalb

This isn’t the first time New York City-based Akari has lost a CEO following scandal. About this time last year, then-CEO Gur Roshwalb abruptly resigned after Edison Investment Research bungled the release of data on Akari’s lead drug Coversin. At the time, Edison had released a report on the drug that included material inaccuracies. It was retracted shortly after its release, sending the company’s stock plunging south.

The company, a drugmaker tackling orphan autoimmune and inflammatory diseases, said its ad hoc review found that one of the five patients covered in an interim analysis of a mid-stage study of Coversin shouldn’t actually be tagged as having met the primary endpoint — even though it was first reported as such. That’s because he dropped out of the study due to an unrelated co-morbidity.

Afterward Roshwalb stepped down, and Horn Solomon took his place in September of last year.


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