Mazor Robotics (NSDQ:MZOR) CEO Ori Hadomi is under investigation by the Israel Securities Authority over accusations of insider trading, according to a report from the Calcalist.
The investigation dates back to a probe launched in May by Israel’s version of the US Securities & Exchange Commission, though the subject matter of the investigation was not initially revealed.
The investigation is now reported to be in relation to a deal Mazor made in May with Medtronic (NYSE:MDT) which gave the Fridley, Minn.-based medical device giant US distribution rights for Mazor’s Mazor X robot-assisted surgery platform.
The deal was expanded in September to give Medtronic global distribution rights to the robotic surgery platform.
In its probe this summer, Israeli security authorities reportedly investigated Mazors’ Caesarea, Israel-based offices following a tip that the deal had been released to associates of the company before being made company.
According to documents obtained from the Calcalist, CEO Hadomi was investigated during the probe in May, including a search of his home and confiscation of his cellular phone.
The suspicions against CEO Hadomi are “substantial”, according to the report, which the publication said came from a person familiar with the investigation who spoke on conditions of anonymity.
Major Robotics did not respond to the Calcalist’s request for more information, according to their report.
Shares in Mazor, which have risen more than 130% since the beginning of the year, have fallen approximately 1% today, at $57.31 as of 12:51 p.m. EST.