Pozen former employee, friend agree to settlement with SEC over insider trading allegations

By Laura Lutz

Des Moines, June 27 - Former Pozen, Inc. employee Harish K. Pimplaskar and his acquaintance Charan R. Behl have agreed to a settlement regarding insider trading charges brought against them by the Securities and Exchange Commission, the SEC announced Thursday.

The settlement requires Pimplaskar to pay $1,552.69 in disgorgement and prejudgment interest and a civil penalty of $33,447.31. Behl will pay $102,443.46 in disgorgement and prejudgment interest and a civil penalty of $91,841.74.

The SEC complaint alleged that, after learning that the Food and Drug Administration was denying approval of MT 100, a new migraine medication from Pozen, Pimplaskar sold his shares of the company's stock. The complaint says he then tipped Behl, who sold out his pre-existing long position in Pozen stock and started short selling the stock.

According to the complaint, Pimplaskar avoided losses of $1,392.00, and Behl avoided losses of $35,088.08 on his long sales and realized profits of $56,753.66 on his short sales as a result of the alleged inside information.

In agreeing to the settlement, the men neither admitted nor denied the allegations against them, the SEC said.

Pozen is a pharmaceutical company based in Chapel Hill, N.C.

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