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  • elanwatch elanwatch Mar 21, 2005 12:20 PM Flag

    Elan Watch: More SEC Problems?

    ELAN WATCH - investor alert

    The U.S. Securities and Exchange Commission invoked a �law enforcement
    exemption� to deny the release of correspondence between Elan
    Pharmaceuticals and the SEC. The invocation indicates that Elan may be
    involved in an ongoing SEC investigation, a fact which could have
    important implications for Elan shareholders.

    The SEC invocation of the law enforcement exemption was in response to a
    Freedom of Information request from the Service Employees International
    Union regarding correspondence between Elan and the SEC. The SEC said
    that Elan records are being withheld �[protecting] from disclosure,
    records compiled for law enforcement purposes, the release of which
    could reasonably be expected to interfere with enforcement activities.�

    The SEC�s use of the exemption is interesting, in part, because it is
    dated March 2, 2005, nearly a month after Elan Pharmaceuticals settled a
    case of disclosure fraud, paying a $15 million fine.[1] <#_ftn1> This
    suggests that the SEC may be pursuing an additional investigation.

    Investors should be aware that there are reasons other than an SEC
    investigation of Elan Pharmaceuticals that could lead the SEC to invoke
    the law enforcement exemption. It is possible, for example, that the
    Elan records are related to an SEC investigation of another company or
    person. It is also possible that another government agency is interested
    in the Elan Pharmaceuticals records, and has requested that they not be

    Law enforcement activity could have significant impact on shareholder

    If Elan is still under investigation, shareholders may want to ask the
    company for full disclosure about any current SEC activities. Investors
    should ask if the SEC or any other government agency has undertaken any
    kind of formal or informal investigation of Elan Pharmaceuticals that
    could lead to enforcement actions.

    /Volume 1, Issue 1/

    Elan Pharmaceuticals Watch is published by the Service Employees
    International Union, Local 1877. This is the first issue of an ongoing
    series of bulletins for Taft-Hartley funds, public pension funds,
    university endowments other institutional investors, private investors,
    analysts and the financial community with regarding Elan
    Pharmaceuticals. //For more information, call Elan Watch at 213-673-2246
    or email at


    [1] CBS Market Watch. �Elan settles SEC case for $15 million� Val Brickates Kennedy. 2/8/2005.

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    • This means nothing as to Elan. SEC obviously is investigating BIIB trading and probably served a subpoena and/or information request to ELN in connection with that investigation. If the BIIB insider trading issue is as bad as it looks (i.e., assuming the BIIB G.C. knew about the T trial issue), then the U.S. Attorney in Boston will also get busy.

      If there were a SEC investigation directed at Elan, Elan would have to disclose it.

    • What else is new? SEC is investigating sales of shares prior to price collapse. No one at Elan was doing anything out of the usual, but it will definitely be looking at BIIB and the specific individual unloaded on the same date as the announcement without a prior filing to do so. That did not look good at all. Mentioned before BIIB's management was lining thier pockets and held a meeting giving more handouts to themselves and possibly all along knowing there was a problem, maybe did'nt tell everyone. If both companys stock pps did'nt get crushed so bad, nothing would have happened, but with so many losing so much on account of the way the market opened that Monday you have a lot of real pissed off people that will pursue any avenue to reclaim thier loses. I don't think Elan did anything out of the normal, 'cept it is debatable as to pulling the drug. So the debate continues...

    • ELAN may be ratting on BIIB if they know anything--after all they just got hit with a 15M fine, and will be turning all kinds of state's evidence to avoid another impropriety.

      I think this looks very good for ELN and pretty bad for BIIB.

      Just like the article intimates about "ratting on some OTHER guy".


    • Elan may be involved in an ongoing SEC investigation .... true!

      sec is about to nail biib exec's to the wall and is doing a thorough perusal of elan records.

      KM is clean ... every long knows that!

    • Before everyone jumps off the cliff

      This is pretty common occurrence-- It wouldn't take a rocket scientist to understand that this would happen based on the immediate problems created by the executives in BIIB and their front page notoriety. and the very nature of the trading. on Feb. 28 and the prior month. They should do a review of all the trading and determine who knew what and when.
      For those of you that would think that this Mngt. group would not protect Elan in this matter JUMP.

      • 1 Reply to okz45
      • If they (B people) were privy and sold BIIB early, would they would buy ELN now? Once in, would they not push for T sales? Question 1, are they done buying?

        OR, Qestion 2, are they are plotting a push down to get the whole enchilada (food for thought). And if that is the case, an offer would soon be in the mill, so there is no reason to JUMP. Not at this price. Its too low to get hurt. Unless you're a pig. lol

    • Thank you for sharing this. As to the following...

      "It is possible, for example, that the
      Elan records are related to an SEC investigation of another company or

      IMHO, this is a certainty, not a probability.

    • It is also possible that Elan has followed through with complaints to the SEC (often voiced on this board) of improper hedge fund manipulation of the stock price over the last few years. In my opinion the likelyhood of a new investigation into Elan, given the recent clearance and settlement is not nearly as high as an ongoing look into the hedgies and their bag of tricks. Point is we don't have enough info to draw a conclusion one way or the other.


    • Likely investigation into BIIBs insider trading. Should not be a big deal to ELN.

    • How about Biogen? They ought to be under investigation by now.