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Il-Yang Pharmaceutical |
[Alpha Biz= Paul Lee] Il-Yang Pharmaceutical has been cleared of allegations that it manipulated its stock price by spreading false information about the effectiveness of its leukemia treatment for COVID-19.
The Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors’ Office announced on April 18 that it had decided not to indict co-CEOs Kim Dong-yeon and Jung Yoo-seok, citing insufficient evidence to support charges of violating capital markets law.
The executives were accused of distributing a press release claiming that Il-Yang’s leukemia treatment “Supect” was more effective against COVID-19 than other well-known foreign drugs, allegedly to boost the company’s stock price. Authorities also suspected that members of the management and their families sold shares during the stock’s rise to gain financial benefits.
However, prosecutors concluded that the information in the press release was not fabricated, and that the claims made by the accusers were sufficiently countered with supporting research data. Il-Yang Pharmaceutical also defended its position during a parliamentary audit, maintaining that the press release was accurate and not misleading.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
