Gareth Sheridan Fine: Misleading Statements – Irish Times
Richard Sheridan‘s Presidential Bid Marred by Past SEC Settlement
Richard Sheridan, an Irish businessman vying to become Ireland’s youngest president, faces scrutiny over a past settlement wiht the U.S. Securities and Exchange commission (SEC). The controversy stems from his involvement with Nutriband Inc., a company developing patch medication technology, and misleading statements made regarding FDA regulation.
Nutriband’s SEC Troubles: A Timeline
The SEC instituted cease-and-desist proceedings against Nutriband, Sheridan, and Serguei Melnik, the company’s chairman, in 2018. The company and its co-founders ultimately settled with the commission.
Fines and admissions
Both Sheridan and Melnik, then the company’s only full-time employees, agreed to pay $25,000 each in fines. The agreement was made solely for the purpose of the proceedings,without admitting or denying the SEC’s findings.Misleading Statements Regarding FDA Approval
the SEC alleged that Nutriband, under the leadership of Sheridan as CEO and Melnik as CFO, made misleading statements in public filings between July 2016 and May 2018 concerning the FDA.
Nutriband’s Transdermal Patches
nutriband offered transdermal patches for sale, including vitamin, weight-loss, and energy patches, starting around January 2016.The FDA resolute that these patches required a new drug application (NDA) or an abbreviated new drug application (ANDA) before they could be legally sold.
Lack of FDA Authorization
Nutriband never sought marketing authorization from the FDA before selling its products in the U.S. Public filings during the period in question contained misleading statements, mischaracterizing the products as not requiring FDA regulation or suggesting that the FDA might regulate transdermal patches in the future.
FDA Regulation Already in place
The SEC emphasized that the FDA already regulated Nutriband’s products, making the company’s statements misleading.
Delayed Disclosure
In July 2018, Nutriband finally disclosed that it had retained FDA counsel who advised that its products were regulated as drugs by the FDA and required market approval before being sold in the U.S. This disclosure also acknowledged that this requirement could substantially limit Nutriband’s projected sales targets.
Sheridan and Melnik’s Obligation
The SEC held Sheridan and Melnik responsible for Nutriband’s reporting violations, stating that they drafted, reviewed, and approved the misstatements as CEO and CFO, respectively. Sheridan also signed reports in 2017 and 2018 affirming that the reports did not contain untrue statements of material fact.
Sheridan’s Presidential Ambitions
Sheridan, who plans to hold a press conference to discuss his presidential aspirations, has expressed his desire to be Ireland’s youngest president. He believes that the choice of a younger candidate is particularly relevant and critically important in the current political climate. He was contacted for comment on the matters raised in this article.