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Former Precipio CFO, Son Agree to Settle SEC Insider Trading Lawsuit

NEW YORK — The US Securities and Exchange Commission last week said that the former CFO of diagnostics company Precipio, along with his son, have agreed to settle charges of insider trading.

In a suit filed in the US District Court for the District of Massachusetts, the SEC alleged that Carl Iberger provided his son, Timothy Iberger, and one other individual with confidential information regarding an agreement Precipio had signed in 2020 to distribute a COVID-19 antibody test.

According to the suit, the day before the deal was announced, Timothy Iberger purchased 25,000 shares of Precipio stock, while the other individual tipped by Carl Iberger purchased 450 shares of Precipio stock. On the day of the announcement, shares of New Haven, Connecticut-based Precipio jumped over 400 percent to close at $7, the SEC said.

Iberger resigned from Precipio last month, citing a desire to spend more time with his family.

The SEC said that Carl Iberger has agreed to pay $69,223, an amount equal to the trading profits of Timothy Iberger and the other individual he tipped off, to settle the charges. He is also barred from serving as an officer or director of a public company for five years. Timothy Iberger has agreed to disgorge $68,350, representing his trading profits, and $3,305 in pre-judgment interest, as well as to pay a $68,350 civil penalty.

Neither defendant has admitted or denied the SEC allegations.