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Ex-Biogen Exec Settles Insider Trading Claims

January 13, 2006|From Associated Press

A former executive at Biogen Idec Inc. who resigned last spring amid an insider trading investigation has reached a $3-million settlement with federal securities regulators.

The settlement announced Thursday by the Securities and Exchange Commission requires Thomas J. Bucknum to give up $1.9 million in profit plus pay a penalty of $969,000 and $102,000 in interest. Bucknum also is barred from serving as a director or officer of a publicly traded company for five years.

Bucknum resigned as Cambridge, Mass.-based Biogen's legal counsel March 9. The move came amid a regulatory inquiry into his sale of 89,700 shares of Biogen stock the same day the firm says it learned of patient illnesses that led to the withdrawal of its multiple sclerosis drug Tysabri from the market.

The 59-year-old Bucknum did not admit wrongdoing under the settlement, which is subject to approval from a U.S. District Court judge in Boston.

The SEC complaint alleged that the order to sell came just after Bucknum attended a meeting with other executives, at which they learned about the patient illnesses. The drug was withdrawn 10 days later, which sent the company's shares plummeting 42% that day.

Juan Marcelino, Bucknum's attorney, said his client initiated the trade before the meeting.

Biogen shares fell 47 cents to $47.06.

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