Trading in Rockwell Medical Inc.'s shares were halted following a flurry of SEC filings by the company and the CEO over his firing.
The biopharmaceutical company filed a Form 8-K on May 22 saying CEO Robert Chioini had been terminated, effective immediately, and a special transition committee had been formed to look for a replacement.
This was followed by Chioini filing a Form 8-K on May 23, stating the directors who voted to fire him were "subjects of the allegations of breaches of fiduciary duty." The independent directors who were not subjects of the allegations, and who Chioini referred to as "non-conflicted" directors, Patrick Bagley and Ronald Boyd, determined that the termination was not effective.
Following this, company Chairman Benjamin Wolin released another SEC filing stating CFO Thomas Klema had been removed from his position.
"Due to the conduct of Mr. Klema in connection with and following the termination of Mr. Chioini, including causing the filing of the unauthorized Current Report on Form 8-K, the independent directors of the board have voted to remove Mr. Klema from his roles at the company as well, which removal will be formally made effective by the board at the earliest practicable date," the filing said.
The company then issued a letter to shareholders on Chioini's behalf stating Chioini will continue to serve as the CEO, and Klema will also remain in his position as CFO.
The Nasdaq halted trading of Rockwell's shares at 9:23 a.m. ET on May 23, seeking additional information.
The Wixom, Mich.-based Rockwell focuses on developing therapies for end-stage renal and chronic kidney diseases. Its lead drugs include Triferic, an iron maintenance therapy for hemodialysis patients, and Calcitriol, a generic active vitamin D injection for dialysis patients.
