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A bad $17 million day for Congressman Collins

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Posted at 1:28 PM, Jun 29, 2017
and last updated 2017-06-29 13:28:47-04

It was supposed to be a "dream" stock, a "sure thing", but shares of an Australian drug company have gone south and the companies biggest investor, Buffalo Congressman Chris Collins is out $17 million, according to Bloomberg News.

Innate Immunotherapeutics stock price was raging on the hope it's new multiple sclerosis drug would be a major brerakthrough for patients, but the company now says the drug has shown little to no effect in helping treat the disease.

The companies share price dropped from $1.77 to less than 5 cents almost overnight this week.  A number of other U.S. lawmakers also bought shares, as did members of Collins' family.

Collins says he has owned stock in the company for 15 years and said he had done nothing illegal when his investment first came to light several months ago.  The Buffalo News reports that the Office of Congressional Ethics is investigating what role the congressman played, if any, in attracting other investors to the company.