Ex-Mylan chief information officer charged over insider trading scheme


The chief information officer (CIO) at former pharmaceutical company Mylan was charged with insider trading for tipping off a former colleague about the firm’s impending merger with a division of Pfizer, among other matters.

Ramkumar Rayapureddy, who holds the same position at Mylan successor Viatris, tipped off his former colleague and friend Dayakar Mallu about the company’s financial results, an unannounced Food and Drug Administration (FDA) approval of a Mylan drug, and an upcoming merger with Pfizer, the Securities and Exchange Commission (SEC) alleged in its complaint filed Nov. 10 in U.S. District Court for the District of Western Pennsylvania. Rayapureddy is also facing criminal charges from the Department of Justice (DOJ).

From September 2017 through July 2019, Rayapureddy notified Mallu of the material nonpublic information, according to the complaint. Rayapureddy worked at Mylan since 2014 and was made CIO in January 2016, the SEC said.

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