A top technology executive at the healthcare company
was charged with sharing illicit stock tips that netted millions of dollars for a friend who traded on them, according to the Justice Department.
Ramkumar Rayapureddy, the global chief information officer at
shared undisclosed information about a regulatory drug approval, his employer’s financial results and a planned merger with a division of
authorities said. When he worked at Mylan NV, a predecessor company to Viatris, Mr. Rayapureddy allegedly leaked the information to a friend, Dayakar Mallu, according to an indictment.
Mr. Mallu paid Mr. Rayapureddy for the information in Indian rupees, authorities said. The payments were made in person and in India to avoid detection, authorities said.
Mr. Rayapureddy was charged with securities fraud and conspiracy. He pleaded not guilty in Pittsburgh federal court on Thursday and posted an unsecured bond of $500,000.
“Ram is innocent, and he looks forward to defending himself in court,” said Adam Lurie, an attorney for Mr. Rayapureddy.
Mr. Mallu last year pleaded guilty to conspiracy to commit securities fraud and aiding in the preparation of a false tax return, according to the Justice Department’s fraud section, which is prosecuting the criminal cases.
Mr. Mallu, a resident of Orlando, Fla., traded on the tips in 2017 and 2019, earning at least $7,264,008 while avoiding losses of $703,337, according to the Securities and Exchange Commission, which filed a separate civil fraud lawsuit in Pittsburgh federal court against Mr. Rayapureddy.
A Viatris spokeswoman said Mr. Rayapureddy is on a leave of absence from the company. Viatris is cooperating with authorities’ investigations and takes the latest allegations very seriously, the spokeswoman said.
Write to Dave Michaels at email@example.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8