Same CEO who got sued by his former head of SFP and then saw his replacement quit just months later. What is the status of the lawsuit against them?
Rockwell Medical Technologies a manufacturer and distributor of dialysis products, is the subject of a potential scandal Wednesday. Former head of drug development, Dr. Richard C. Yocum, has accused the company of issuing false and misleading press releases.
Yocum was fired by Rockwell Medical back in September, and has since filed a wrongful termination suit. Yocum claims that he was let go following a series of complaints to CEO Robert Chioni that the company was violating Securities Exchange Commission (SEC) and Food and Drug Administration (FDA) rules.
Yocum was responsible for the company's Soluble Ferric Pyrophosphate (SFP) - a physiological iron maintenance therapy designed to treat or prevent iron deficiency anemia in end-stage renal disease (ERSD) patients - development program. Yocum states in his suit that Rockwell Medical was putting out press releases in 2010 and 2011 that implied the clinical trials were going better than they actually were.
Rockwell appointed Yocum to the position of vice president of drug development and medical affairs in March 2009.
At that time, Chioni issued a statement saying, "We welcome Richard to the Rockwell team. He brings a wealth of experience and knowledge in clinical development and has coordinated clinical drug development processes across the United States, Europe and Japan. We are confident that Richard's expertise will enable Rockwell to successfully bring SFP to the market, as well as to develop proprietary SFP related extensions to penetrate additional markets.”
Yocum held that position, with its $298,000 salary, for two and a half years before he was let go. Given his release, he may hold a grudge against Rockwell Medical.