Biotech mogul Sam Waksal— of Martha Stewart ‘insider trading’ fame— accused of testing illegal pig drug on child: lawsuit

New York Post - Apr 25th, 2025

Biotech mogul Sam Waksal is embroiled in a legal scandal involving the alleged illegal testing of a veterinary drug on a child with epilepsy. The lawsuit claims that Waksal imported the drug from Colombia and administered it to the child, whose mother worked for his company, Equilibre Biopharmaceuticals. This incident was exposed by a whistleblower, leading to Waksal's forced resignation from Equilibre in 2022. The lawsuit also accuses Waksal of sexual harassment and other misconduct, with accusations pointing to his attempts to stifle the investigation by placing the child's mother on administrative leave and offering financial incentives to another witness. The lawsuit seeks at least $150 million in damages from Waksal and other defendants, including Equilibre directors and another biotech firm he owns, Graviton.

The context of this story ties back to Waksal's infamous past, where he served five years in prison for the ImClone insider trading scandal that also involved Martha Stewart. This current legal battle reignites scrutiny over his business practices and ethical conduct. The implications are severe, potentially impacting the reputation and operations of Graviton, which received investment from Sanofi. As Equilibre files for bankruptcy, this lawsuit underscores the broader issues of corporate governance and accountability in the biotech industry. With Waksal's history of legal troubles, the stakes are high as the case unfolds, raising questions about regulatory oversight and ethical standards in pharmaceutical research and development.

Lawsuit Whistleblower Fda Insider Trading Epilepsy Sam Waksal Equilibre Biopharmaceuticals Graviton Im Clone Illegal Drug Testing

Story submitted by Fairstory

RATING

6.8

Fair Story

Consider it well-founded

The article provides a detailed account of serious allegations against Sam Waksal, effectively highlighting the legal and ethical issues involved. It offers a clear and timely narrative that engages readers and addresses public interest topics. However, the story could benefit from more balanced reporting by including additional perspectives and independent verification of key details. The reliance on the lawsuit and statements from involved parties limits the source quality, and the lack of transparency regarding the investigation's methodology leaves some questions unanswered. Overall, the article is informative and engaging, but further corroboration and balanced perspectives would enhance its reliability and impact.

Accuracy

The story provides a detailed account of allegations against Sam Waksal, including his past involvement in the ImClone scandal and a new lawsuit accusing him of testing an illegal drug on a child. It accurately recounts Waksal's history with ImClone and his prison sentence. The article cites a lawsuit filed in federal court, which supports the claim's credibility. However, it lacks independent verification of certain details, such as the authenticity of text messages between Waksal and the child's mother and the child's current health status. These areas require further verification to ensure full accuracy.

Balance

The article predominantly presents allegations against Waksal, focusing on the lawsuit's claims and the whistleblower's accusations. While it includes a statement from Graviton defending the company, it does not provide Waksal's perspective or comments from independent experts. This imbalance may lead readers to perceive bias against Waksal, as the article heavily emphasizes the negative aspects of the allegations without exploring potential defenses or counterarguments.

Clarity

The article is well-structured and clearly presents the main allegations against Waksal. It uses straightforward language and maintains a neutral tone, making it accessible to a general audience. The logical flow of information helps readers understand the sequence of events and the key points of the lawsuit. However, the lack of detailed explanations for some allegations may lead to confusion for readers seeking a deeper understanding of the case.

Source quality

The story references a lawsuit filed in federal court, which lends credibility to the claims. It also includes statements from Neal Brickman, an attorney representing Equilibre, and a spokesperson for Graviton. However, the article relies heavily on these sources without corroborating the information with independent verification or additional expert opinions. This limits the overall reliability of the sources used.

Transparency

The article discloses the origins of the allegations and identifies the lawsuit as the primary source of information. It mentions the absence of independent confirmation for certain details, such as the text messages, which adds some transparency. However, it does not provide a comprehensive explanation of the methodology or context behind the claims, leaving readers with unanswered questions about the investigation and its findings.

Sources

https://worldnews.bg/n/biotech-mogul-sam-waksal-of-martha-stewart-%E2%80%98insider-trading%E2%80%99-fame-accused-of-testing-illegal-pig-drug-on-child-lawsuit_413607/