Richard Selden, the former Transkaryotic Therapies ceo, agreed to pay more than $1.1 million to settle claims he misled investors by withholding negative data about the biotech’s Replagal med between 2000 and 2002, according to the US Securities and Exchange Commission.

The SEC’s civil lawsuit accused Selden, 49, of making positive statements to investors about Replagal’s chance of winning FDA approval, without disclosing that the agency wouldn’t approve the drug after failing a clinical trial and recommended more testing. He didn’t admit or deny wrongdoing in settling, the SEC says in a statement.

Selden, who was a founder of the biotech, Selden allegedly avoided losses of more than $1.6 million by selling 90,000 shares from May 2001 through February 2002, the SEC said in its original complaint three years ago. The stock plunged 62 percent the day after the FDA info became public in October 2002, according to the SEC.

Selden resigned in 2003. Transkaryotic, which hoped to have Replagal approved to Fabry’s Disease, a painful genetic disorder that increases risk of stroke, heart attack and renal failure, eventually gave up seeking FDA approval and was later purchased by Shire Pharmaceuticals.