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Deadline Extended in ImClone Talks

July 26, 2002

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NEW YORK (AP) _ A federal judge on Friday granted prosecutors another extension in their deadline to file an indictment against former ImClone Systems Inc. CEO Sam Waksal, while both sides continue discussions on a possible plea.

The two-week window granted by Magistrate Andrew Peck in Manhattan is the second such delay in the case.

Federal prosecutors said they have had several conversations with Waksal’s defense team in the hopes of ``reaching a disposition of this case.″

Assistant U.S. Attorney Michael Schachter wrote in court papers that he had been asked Tuesday by a lawyer for Waksal to get another extension.

Both sides now have until Aug. 9.

Waksal was charged last month with insider trading for allegedly tipping off relatives to dump millions of dollars worth of ImClone stock just before it was announced that the Food and Drug Administration had rejected the application for the company’s cancer drug, Erbitux.

Waksal allegedly phoned his daughter, Aliza, several times just before she dumped $2.5 million in ImClone shares on Dec. 26.

The following day, the FDA announced the rejection and ImClone’s stock fell dramatically.

If Waksal does not strike a deal with prosecutors, he faces a likely indictment _ and the possibility of serious criminal charges filed against his daughter.

The high-profile criminal probe has also ensnared domesticity doyenne Martha Stewart, a friend of Waksal who dumped shares just before the FDA’s announcement.

Stewart and Aliza Waksal had the same stockbroker, who carried out the trades.

Congress is also investigating the Waksals and Stewart.

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