(News Bulletin 247) – The stock market regulator accuses the company of poor financial communication and insider trading for four of its directors and their three asset companies.

The Sanctions Commission of the Financial Markets Authority has imposed fines totalling 930,000 euros against the company Biosynex, which specialises in screening tests, four of its directors and their personal holding companies.

The stock market regulator accuses the company and its CEO of poor financial communication and insider trading on the part of four of its directors and their three parent companies.

“On March 20, 2020, a few days after the start of the lockdown (…), Mr. Larry Abensur, Chairman and CEO of Biosynex, responded to an interview with a journalist” and three days later an article was published “indicating that Biosynex estimated that it would be able to distribute the first Covid 19 detection tests in France in early or mid-April 2020”, reports the sanctions committee.

A press release sent 3 days later

However, Biosynex did not publish a press release making this information official until three days later. In the meantime, its stock had jumped 82% on the stock market.

The AMF Sanctions Commission “considered that by revealing part of this information to a restricted audience during this interview, without publishing a press release, Biosynex had failed in its obligation to ensure effective and complete dissemination of the privileged information” of the upcoming launch of PCR tests. This grievance is attributed to the company and its CEO Larry Abensur.

Insider Misconduct

The fine imposed on Biosynex amounts to 50,000 euros. In addition, allegations of insider trading were also brought against Larry Abensur, the two deputy general managers and the director and financial director of Biosynex.

The AMF explains that all four of them sold Biosynex shares knowing that the company was going to sell all of its treasury shares and before this information was known to the market.

The three companies in which three of them invested assets were also fined. CEO Larry Abensur and his asset company were fined a total of 460,000 euros.

Fines of 230,000 euros were imposed on a deputy general manager and his holding company, and two other fines of 120,000 euros were imposed on the other deputy general manager and his holding company. Finally, the administrator and financial director was fined 70,000 euros.

This decision may be appealed.

(With AFP)