On March 29, 2016, the SEC announced that it brought "fraud charges against a Massachusetts-based biotech company and three former executives for misleading investors about the company's efforts to obtain Food and Drug Administration (FDA) approval for its flagship developmental drug to treat kidney cancer."

On March 29, 2016, the SEC announced that it brought "fraud charges against a Massachusetts-based biotech company and three former executives for misleading investors about the company's efforts to obtain Food and Drug Administration (FDA) approval for its flagship developmental drug to treat kidney cancer."

In the Complaint, the SEC alleged that: "In 2012 and 2013, AVEO Pharmaceuticals, Inc. ('AVEO'), its chief executive officer, Tuan Ha-Ngoc ('Ha-Ngoc'), chief financial officer, David Johnston ('Johnston'), and chief medical officer, William Slichenmyer ('Slichenmyer') (collectively, 'defendants') made materially misleading statements to investors about communications with staff of the Food and Drug Administration ('FDA') about AVEO's flagship drug candidate, tivozanib ('Tivo'). In these statements, the defendants noted that FDA staff had expressed concerns about survival rates for patients receiving Tivo, and told investors that AVEO would be addressing those concerns by doing 'additional analyses.' In so doing, the defendants concealed the critical fact that FDA staff had recommended that AVEO conduct an additional clinical trial, an expensive and time-consuming proposition."

On March 31, 2016, Federal District Judge Nathaniel M. Gorton entered final judgment against AVEO Pharmaceuticals, Inc. pursuant to the consent of AVEO Pharmaceuticals, Inc.

The Commission stated: "The Securities and Exchange Commission obtained a final judgment against David Johnston, the former Chief Financial Officer of Massachusetts-based biotech company, AVEO Pharmaceuticals, Inc."