On January 15 2026, the New York Attorney General’s office filed a lawsuit against former Emergent BioSolutions Inc. CEO Robert Kramer, alleging that he sold company shares in January and February 2021 under a trading plan that began in October 2020, before the company disclosed serious contamination problems in its COVID‑19 vaccine production. The lawsuit is brought under the state’s Martin Act, which allows the Attorney General to pursue securities fraud cases without proving intent or damages.
Kramer’s sales generated an illegal profit of $10.12 million, a figure that the Attorney General’s office cites as evidence of insider trading. The contamination issues were first identified in early October 2020 when an executive vice president presented a presentation detailing aborted and contaminated batches of the AstraZeneca vaccine. By October 13, 2020, Emergent concluded that multiple batches were likely lost due to contamination, a fact that was not made public until later in the year.
Emergent has agreed to a $900,000 penalty and to strengthen its executive trading policies. The settlement follows a $40 million shareholder settlement reached in February 2025, which addressed similar allegations of insider trading and misrepresentation during the pandemic. The company’s CEO, Robert Kramer, retired in June 2023, and his lawyer, Kirby Behre, has called the lawsuit “baseless and an overreach,” asserting that Kramer complied with company procedures and federal rules.
The filing underscores ongoing governance and compliance risks for Emergent. The Martin Act’s broad enforcement powers mean that the company may face further regulatory scrutiny, and the settlement signals a need for tighter internal controls. Analysts note that the lawsuit could prompt a review of the company’s executive trading policies and may influence investor confidence in the firm’s governance framework.
Letitia James, the Attorney General, stated that “Corporate executives who use insider information to illegally trade company stocks betray the public’s trust. At the height of the COVID‑19 pandemic, Robert Kramer illegally profited millions by selling his company shares, while knowing that Emergent faced serious manufacturing problems.” The statement highlights the ethical and legal implications of the alleged conduct.
Emergent’s management has emphasized its commitment to improving transparency and integrity. The company’s board has announced plans to enhance oversight of executive trading and to implement additional compliance training, aiming to restore confidence among shareholders and regulators.
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