Clovis CEO Patrick Mahaffy settles up on SEC charges of lying about the roci data — and it won’t cost much
For 4 critical months in 2015, Clovis $CLVS and its executives led by CEO Patrick Mahaffy maintained that their cancer drug roci had performed beautifully in clinical trials, with a 60% efficacy rate that blew the analysts away. That’s what they told investors, raising $298 million with a fat stock price in July of 2015.
And, according to the SEC, Mahaffy knew it was a lie. He and former CFO Erle Mast were told earlier that the efficacy had shrunk considerably, but that wasn’t their public line. And when they disclosed the truth in November, their share price plunged 70%.
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