SEC revives insider trading suit over Onyx shares

(Reuters) – U.S. securities regulators have filed a new lawsuit accusing two Dubai residents of illegally trading in Onyx Pharmaceuticals Inc stock based on inside information, one month after a federal judge dismissed an earlier version of the lawsuit. The two defendants amassed “large, speculative and highly leveraged” positions in both Onyx and Life Technologies Corp that earned them profits of $3.7 million, the Securities and Exchange Commission said in a new lawsuit filed on Friday. A Manhattan federal judge dismissed an earlier lawsuit against the defendants, Dhia Jafar and Omar Nabulsi, and said the SEC had not provided enough information to infer that the pair had traded based on nonpublic tips. But U.S. District Judge Paul Oetken said he would keep the accounts that held the trading profits frozen for 30 days, and allowed the SEC some extra time to file an amended complaint.


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