Waksal Pleads Not Guilty to Insider Trading Charges

Sam Waksal, the founder and former chief executive of ImClone Systems ( IMCL), pleaded not guilty Monday to charges accusing him of securities fraud, bank fraud and insider trading.

Waksal was indicted last week on charges that he tried to use nonpublic information to dump the company's shares days before a negative ruling from the Food and Drug Administration involving ImClone's cancer drug Erbitux was announced. Waksal was arrested in June under a criminal complaint and had reportedly been in talks to settle the charges, which also involve alleged tips to his father and daughter.

The plea took place in U.S. District Court in Manhattan, where Waksal had been indicted on charges of insider trading and perjury. New obstruction of justice and bank fraud charges were brought against Waksal last week.

Outside the courthouse, Waksal told reporters that the case had been "extremely challenging and emotionally draining for me, my family and my friends." He also said he still thinks Erbitux can help cancer victims.

Investigators have also been looking at Waksal's friend Martha Stewart, the chief executive of Martha Stewart Living Omnimedia ( MSO), for her trading in ImClone. Stewart sold her shares of the company's stock just days before the FDA ruling on Erbitux was made public. Stewart has repeatedly said she did nothing wrong.

Shares of ImClone were up 85 cents, or 11.6%, to $8.19.

More from Stocks

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

UAW Officially Files Complaint on Tesla Thanks to CEO Elon Musk

UAW Officially Files Complaint on Tesla Thanks to CEO Elon Musk