Aegerion Board Expresses Support for Embattled CEO Amid Drug Use Accusations

NEW YORK (TheStreet) -- Aegerion Pharmaceuticals (AEGR) issued a statement Tuesday night expressing its board of directors' support for CEO Marc Beer in the face of accusations of cocaine use and extramarital sex involving a Jefferies investment banker and his wife. 


"Marc categorically denies the allegations. The board fully supports Marc, and has confidence in his leadership and his character. The board takes its governance responsibilities very seriously, but does not comment publically on internal governance matters," the Aegerion statement read. 

Last week, Christina Di Mauro Kelly filed court papers related to the divorce in which she accused Sage Kelly of using illegal drugs, including cocaine, with Beer and business associates. Christina Di Mauro Kelly also recounted a 2012 night in a Boston hotel room in which she and Sage Kelly did drugs with Beer and his girlfriend. The four then had sex together, Christina Di Mauro Kelly alleges, according to the filed court papers. 

Beer issued a statement over the weekend denying Christina Di Mauro's accusations. He issued a follow-up statement Tuesday night: "Ms. Kelly's accusations as to me are categorically false and baseless. I do not use cocaine or any other illegal substance. All of the allegations which Ms. Kelly has made regarding me and my girlfriend are ridiculous, baseless and grossly irresponsible."

The Kelly divorce disclosures contributed to an 8% drop in the value of Aegerion's stock price on Friday. Shares have since recovered and closed Tuesday at $33.69.

Aegerion is scheduled to report its third-quarter financial results and hold a conference call on Thursday evening.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

More from Investing

Lam Research and ASML's Outlooks Suggest Bad Chip Equipment News Is Priced In

Lam Research and ASML's Outlooks Suggest Bad Chip Equipment News Is Priced In

Applied Materials Keeps Rising on Wednesday

Applied Materials Keeps Rising on Wednesday

Chart: Buybacks in Semiconductor Stocks Help Sector Weather the Storm

Chart: Buybacks in Semiconductor Stocks Help Sector Weather the Storm

The Fed Really Likes That Its Gradual Approach to Rate Hikes Is Working

The Fed Really Likes That Its Gradual Approach to Rate Hikes Is Working

Buy Netflix Even After Its Big Run-Up? Here's Why It's Not Such a Crazy Idea

Buy Netflix Even After Its Big Run-Up? Here's Why It's Not Such a Crazy Idea