, its chief executive and another company official were notified by the
Securities and Exchange Commission
that they might be facing regulatory actions.
The SEC issued Wells notices last week in connection with an investigation of a clinical trial of Inspire's dry-eye product candidate Prolacria.
The Wells notices indicate that the SEC staff plans to recommend that the full commission bring a civil action against the company and the two officers regarding possible violations of securities laws.
Inspire, a biopharmaceutical company, and the officers will have the opportunity to respond in writing before the staff makes any formal recommendation. Shares of Inspire were losing 62 cents, or 11%, to $5 Monday.