NYCs ex-COVID czars media spin comments on SIGA technologies monkeypox drug sparks investigation

The former employer of New York City’s ex-Covid czar is being investigated for potential violations of federal securities laws after he seemingly blabbed to an unidentified woman that the company hired him to “spin” facts to the media about the monkeypox drug they manufactured. Two New York City-based law firms launched probes this week into SIGA Technologies, on behalf of its investors, after the pharmaceutical firm’s former chief medical officer and executive president, Dr.Jay Varma, was caught making the comments on a hidden camera.

Varma, who served as a senior health adviser to former Mayor Bill de Blasio, seemingly admitted to using the media to “spin stories” to salvage SIGA’s monkeypox drug TPOXX and to preserve the company’s stock price, according to Levi & Korsinsky, one of the law firm’s investigating.Highly edited clips of the secret recording between Varma and a so-called undercover operative were released Wednesday as part of conservative podcaster Steven Crowder’s series “Mug Club.”Another law firm investigating possible security claims on behalf of investors of SIGA — Wolf Haldenstein Adler Freeman & Herz — noted the company had been conducting a clinical trial to evaluate the efficacy and safety of TPOXX in the treatment of Mpox.But on Aug.

15, a clinical trial revealed the drug failed to “achieve its primary endpoint,” Wolf Haldenstein Adler Freeman & Herz said.Varma reportedly said the apparent “spin” campaign was carried out to convince investors “not to dump the stock, thinking that the Company was worthless,” according to Wolf Haldenstein Adler Freeman & Herz.

Following the release of Varma’s comments, SIGA’s stock dropped by more than 15%, the law firm said. Varma was fired from SIGA on Sept.19 after he was caught on a secret recording publicly bragging about hosting sex parties and attending an underground Manhattan rave party during the height of the pandemic while serving as ...