By Kristin Jones
Immunomedics Inc. (>> Immunomedics, Inc.) expects to receive a total payment of $16.7 million after reaching a settlement with its former broker, resolving allegations the drug company had brought to the Financial Industry Regulatory Authority related its investments.
Immunomedics said Monday that it will receive a gross settlement amount of $18 million, excluding expenses and legal fees, and has agreed to dismiss the proceeding with prejudice against an unnamed broker.
The company has said in filings that in 2009, it initiated an arbitration proceeding before Finra against its former investment advisor, former Bank of America Corp. (>> Bank of America Corp) units Banc of America Investment Services Inc. and Banc of America Securities LLC. Immunomedics accused the firm of making false representations or omissions concerning auction rate securities.
A representative from Bank of America wasn't immediately available for comment.
Immunomedics focuses primarily on the development of treatments for cancer and other serious diseases.
Its shares closed Monday up 1.2% at $2.44 and were unchanged after hours. The stock is down 16% since the start of the year.
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