BioCentury
ARTICLE | Company News

CellCyte gene/cell therapy news

September 14, 2009 7:00 AM UTC

The SEC filed two suits in the U.S. District Court for the Western District of Washington against CellCyte and two former executives, alleging the parties made misleading statements about the status of an investigational stem cell therapy. SEC said the company and the executives falsely claimed to have received FDA approval to begin clinical trials with a stem cell compound to repair the heart. The parties also allegedly engaged in an illegal stock distribution by partnering with a Canadian stock promoter, which distributed similarly false information about the company.

The company and former CSO Ronald Berninger, who were jointly named as defendants in the first complaint, have agreed to a settlement under which the parties are permanently enjoined from violating SEC regulations, but did not admit or deny the allegations. Berninger also will pay a $50,000 penalty and is barred from serving as an officer or director of a public company for five years. ...