Federal prosecutors have charged Zachary Zwerko, former senior finance analyst at Merck, with conspiracy to commit fraud for tipping a contact about potential mergers, including Merck's takeover of Idenix Pharmaceuticals.
According to the complaint, Zwerko had access to a computer directory of information about potential acquisitions and learned Ardea and ViroPharma were both potential targets, and then passed the information via phone to trader at an unnamed bank. The bank trader, who is not being charged, allegedly traded on Zwerko's tips about Idenix, Ardea Biosciences and ViroPharma Inc.
Read the Reuters press release