(BFM Stock Exchange) – The gendarme of the Stock Exchange pronounced a total fine of 700,000 euros for failure of initiates against several people, including the former executive and founder of the Biotechnology company which has been liquidated since.

The AMF sanctions committee announced on Wednesday that it has sentenced to a total amount of 700,000 euros in fines several in question in a case of “failure of initiates” around French Biotech Lysogene, now liquidated.

“In its decision of May 5, 2025, the Sanctions Commission inflicted on Ms. Karen Pigne-Aiach, Mr. Gad Aiach, Mr. Michaël CHETRIT and Mikostart of pecuniary sanctions of 150,000 euros, 400,000 euros, 50,000 euros and 100,000 euros respectively for having disclosed or used privileged information or to have recommended an investment on the basis of this information Privileged “, details the Autorité des Marchés Financiers (AMF) in a press release.

“Privileged information”

The representative of the College of the AMF asked during a committee session in February a total of 1.4 million euros in fines.

The manager of the company Lysogene, Karen Pigne-Aiach, is suspected of having transmitted privileged information on February 10, 2021 to her former companion, Gad Aiach, with whom she had co-founded the company to fight against the disease with which their daughter was reached.

The AMF accuses him of having warned the latter that the American drug regulator (FDA) would approve the launch of clinical studies for a drug developed by the company, dedicated to the treatment of gangliosidosis in GM1, a serious pediatric disease. This information, when it was made public on February 12, made the title on the stock market jump.

Gad Aiach, who had been ceased to exercise any responsibility for Lysogene for several years, would have, between February 10 and 12, 2021, acquired for 70,000 actions in Lysogene, to resell them on February 15, which would have enabled him an added value of around 36,000 euros.

Gad Aiach is accused of having “transmitted this information to two of these friends, including Michaël Chetrit, and on the other hand, recommended to his partner an investment on the basis of this information,” said the AMF in his publication.

His friend would have bought for several hundred thousand euros in Lysogene shares, via his company Mikostart, whose corporate purpose is to organize tourist stays, and would have achieved a capital gain of 248,000 euros.

“On the other hand, the Commission considered that the failure, notified to Gad Aiach, of disclosing this privileged information to his second friend was not characterized,” continues the AMF.

The decision of the Sanctions Commission may be appealed.

(With AFP)