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Immunomedics books $16.7M in brokerage settlement

MORRIS PLAINS, N.J. (AP) -- Drug developer Immunomedics said Tuesday that it expects to receive a payment of $16.7 million after settling allegations with a former broker that were brought before financial regulators.

The company said the settlement involves an $18 million payment in return for dismissing the proceedings with prejudice. The company and the broker, who was not named, agreed to release each other from all claims and liabilities. Immunomedics had referred the matter to the Financial Industry Regulatory Authority, a private regulator of brokerage firms and exchange markets.

After paying expenses and legal fees the company expects to book $16.7 million from the settlement.

Shares of Immunomedics Inc. rose 19 cents, or 7.8 percent, to $2.63 in afternoon trading.