Medarex subpoenaed over stock option grant practices

By Elaine Rigoli

Tampa, Fla., June 15 -Medarex, Inc. received a grand jury subpoena from the U.S. Attorney's Office in the District of New Jersey requesting documents and information related to Medarex's past stock option grants and practices.

Medarex has already received a letter of informal inquiry from the Securities and Exchange Commission requesting similar information.

Additionally, two shareholder derivative lawsuits have been filed in New Jersey state court by persons purporting to act on behalf of Medarex, naming Medarex, as the nominal defendant, and a number of current and former directors and officers as defendants.

The lawsuits allege breach of fiduciary duty associated with Medarex's options grant practices, as well as violations of federal securities laws in connection with public statements made by Medarex in its SEC filings relating to its stock option practices and related accounting, and seek unspecified damages and equitable relief.

Medarex is a biotechnology company located in Princeton, N.J.

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