A salacious Wall Street child custody and divorce battle has touched two biotech CEOs and appears to have initially moved their company stocks down despite vigorous denials regarding unsubstantiated claims of their illegal drug use.
Aegerion Pharmaceuticals boss Marc Beer and Seattle Genetics chief executive Clay Siegall were named in a New York court filing last week as part of a group of executives who partied using illegal drugs with Sage Kelly, head of health-care investment banking at Jefferies, a Leucadia National unit.
The full filing document started circulating Friday and appeared to help push Aegerion's stock down 7.76 percent. The stock recovered somewhat Monday and closed at $32, down 3.16 percent since Friday. Seattle Genetics' stock rose 0.98 percent Friday but fell 1.57 percent Monday. The Dow Jones Industrial Average gained both days. Both stocks moved higher by several percentage points Tuesday, recovering the losses since Friday.
Kelly's wife, Christina Di Mauro Kelly, filed the papers as part of a divorce proceeding in an attempt to regain custody of their two daughters and receive $7 million in damages. In the documents, she described her husband as the "ringleader" of a "drug cohort" of financial and corporate industry pros who mixed business with pleasure by partying in Manhattan, Las Vegas, the Hamptons and other moneyed locales.