HLB is being investigated by financial authorities for false announcement(60,600 -3.04%)It is not expected that there will be any suspension of stock trading in Korea. The allegations of stock unfair trade following false announcements are, in principle, not included in the reason for the suspension of transactions, unlike negligence, embezzlement, and fraudulent accounting by management, etc. However, as the financial authorities have decided to accuse HLB to the prosecution, the truth of this controversy is expected to be hidden in court.
An official from the Korea Exchange said on the 18th, “The transaction suspension is usually taken after the Financial Supervisory Service accuses the prosecution of a specific listed company for fraudulent accounting, embezzlement, or malpractice.” That doesn’t apply.”
The financial authorities conducted an investigation last year on the allegations that HLB’s self-developed anticancer drug’Riboceranib’ in 2019 was arbitrarily interpreted and announced on the allegation of the clinical phase 3 results. The financial authorities believed that HLB at the time hid it even after receiving an opinion that’clinical had failed in fact’ in the process of discussing drug approval with the US Food and Drug Administration (FDA). HLB is confronting this by saying, “We have disclosed all the facts and announced that it is a’clinical success’ through data that meets FDA regulations.”
It is known that the Financial Services Commission recently held a deliberation by the Capital Market Investigation Deliberation Committee and made a decision on “prosecuting prosecution” against HLB. If this decision is confirmed by the Securities and Futures Commission, which will be held in the near future, it leads to an actual prosecution charge.
HLB is confident in proving his innocence. The announcement of the successful clinical trial of riboseranib was not based on the judgment of HLB, but by Covington, a U.S. law firm with experts from the FDA. A company official said, “The expression of the FDA’s’clinical failure’, which the financial authorities are making a problem with, is not all data, but only an opinion on some data,” said a company official. He added that “Chairman Jin Yang-gon answered defensively considering that he was ahead of the Jeungseon Committee on the 16th, but he plans to actively refute it in the future.”
Reporter Kim Woo-seop [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution