IGI Laboratories, now called Teligent, is a company that specializes in generic drugs.
IGI Laboratories has a checkered past. As early as 1996, they were in danger of coming up short on a Q1 revenue target. The reason being that they had botched a production batch of vaccines. Four executives, including then President John Gallo, decided that they couldn’t handle that loss. So, they shipped the vaccine overseas to recoup some of their money. They falsified documents to say that the vaccines were approved by the USDA. When in fact, they hadn’t been.
A month after shipping the vaccines, they reported a 21 percent rise in first quarter sales. This started a whirlwind of accounting fraud.
When chairman and founder Edward Hager was diagnosed with cancer, he began working from home. This gave John Gallo a chance to increase his extravagant lifestyle with company funds. With Hager out of the way, he knew he could do what he wanted.
In 1997, the USDA stumbled upon flawed records. Going into panic mode, IGI started cleansing files to get rid of evidence. Gallo started losing support from his cronies at IGI. He got a surprise when CFO Donald MacPhee balked at repeated requests to cook the books.
Hager eventually recovered from his cancer. Once he was back at work, he made a deal with IGI Treasurer, Kevin Bratton, to find out once and for all what was going on. Finally, Gallo lost his job, along with a dozen IGI insiders. At this point, the firm was investigated by six US Agencies.
The AMEX let IGI resume trading in 1998. In October of 2015, they relaunched the brand and began trading under the name Teligent, Inc. (TLGT). Need stock market attorney? Contact us today.