Aveo to Pay $4M to Settle SEC Claims

Aveo Pharmaceuticals will pay $4 million to settle SEC claims that it and three former executives misled investors for nearly a year about regulatory roadblocks facing one of its candidates.

Under the deal announced last week, which still requires court approval, Aveo will pay the penalty and abide by an injunction in exchange for the commission dropping its investigation into the company’s practices.

However, this deal does not protect former executives facing fraud and related charges for supposedly deceiving investors about the chances of its kidney cancer candidate tivozanib securing FDA approval.