AstraZeneca(US:AZN) Benzinga·2026-01-16 12:46Core Viewpoint - Emergent BioSolutions Inc. is facing legal challenges due to alleged insider trading by former CEO Robert G. Kramer, which has led to a lawsuit from the New York Attorney General [1][4]. Settlement Terms - Emergent has agreed to pay $900,000 in penalties to New York and will enhance its executive stock-trading controls and policies [2]. - The company previously signed two manufacturing deals with AstraZeneca totaling $261 million for COVID-19 vaccine supply, which resulted in a 43.6% increase in stock price from $94.99 to $136.49 [2]. Manufacturing Trouble - Issues began in September and October 2020, when contamination problems were discovered at Emergent's production site, leading to concerns about multiple vaccine batches [3]. - An executive shared a presentation with Kramer on October 6, 2020, detailing these contamination issues, and by October 13, 2020, it was concluded that contamination could affect several batches [3]. Trading Plan Focus - Kramer utilized a Rule 10b5-1 plan for prearranged trades, but the state argues that this rule does not protect trades made with inside information [4]. - Emergent approved Kramer's trading plan on November 13, 2020, and he sold shares in January and February 2021, earning over $10.1 million from these sales [4]. Attorney General Statement - Attorney General Letitia James emphasized that corporate executives who misuse insider information undermine public trust and stated that Kramer's actions were both illegal and unethical [6][7].