Patrik Sundh, CEO and board member of Cline Scientific, has been convicted of market manipulation by the Stockholm District Court. This was announced by the company in a press release on Tuesday. The judgment pertains to the purchase of class B shares in the company at a total value of 62,000 SEK, which was carried out in November 2022.
Cline Scientific is a biotech company that has developed a patented surface technology, which is used in two preclinical projects. StemCART is a stem cell-based therapy for cartilage damage and osteoarthritis, while CellRACE is a diagnostic product to assess the risk of metastasis of a tumor.
At the beginning of May, the company announced that CEO Patrik Sundh had been notified of suspicion of market manipulation and that he was the subject of a preliminary investigation. The suspicions related to the purchase of the company’s class B shares that Sundh made in November 2022, in connection with the rights issue that was carried out at that time. The purchases amounted to a total value of 62,000 SEK.’
In connection with the announcement of the preliminary investigation, Patrik Sundh chose to take a break from his role as CEO of Cline Scientific, until the preliminary investigation was completed. During the period, Vice President Hanne Evenbratt was appointed acting CEO.
Returned to the CEO role in September
In mid-September, however, it was announced that Sundh, after discussions with the board, had returned to the role of CEO of Cline.
“We have seriously considered the challenges the company is facing and have come to the conclusion that this is both the only and the best solution. The board has both continued full confidence and has great respect for Patrik and his long experience from Cline and in the Life Science area. We thank Hanne Evenbratt for having fulfilled the role of CEO meritoriously over the past few months and now welcome Patrik Sundh back to the post”, commented Johan Bjurquist, Chairman of the Board, at the time.
On Tuesday, Cline Scientific announced that the Stockholm District Court has now handed down its verdict in the case and that Patrik Sundh has been convicted of market manipulation. Sundh has, in consultation with his legal representative, decided to appeal the verdict. In a press release, the company writes that the Board of Directors still has full confidence in Sundh to lead the business forward.The content of BioStock’s news and analyses is independent but the work of BioStock is to a certain degree financed by life science companies. The above article concerns a company from which BioStock has received financing.