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Husband of former Ariad executive charged with insider trading

PHARMACEUTICALS

Husband of former Ariad executive charged with insider trading

The husband of a former Ariad Pharmaceuticals Inc. executive was arrested by federal authorities Thursday and charged with three counts of insider trading based on information he learned from his wife, according to the US attorney’s office in Boston. Harold L. Altvater, 55, was indicted on charges of illegally trading Ariad stock on three occasions between October 2013 and January 2014 using nonpublic information he got from his wife, who was a senior drug safety executive at the Cambridge-based pharmaceutical company, concerning a drug used to treat certain forms of leukemia that was in clinical trials at the time. Altvater, a former anesthesiologist who lives in North Reading and operates a medical marijuana consultation practice with offices in Malden and Methuen, and two former Ariad senior employees were also charged with insider trading last month by the Securities and Exchange Commission for the same allegations. According to the US attorney’s office, Altvater, without his wife’s knowledge, traded Ariad shares in his personal brokerage accounts in advance of the company’s announcements on the performance of the drug Iclusig as it was going through the process of receiving approval status from the Food and Drug Administration based on information he learned from his wife who was involved with the FDA meetings. By selling his Ariad shares prior to Oct. 9, 2013, when Ariad announced it was pausing enrollment in clinical trials of the drug, Altvater avoided a loss of more than $75,000, according to the federal indictment. The SEC alleged he avoided losses and obtained insider profits totaling $102,026.30. Ariad was acquired by Japan’s Takeda Pharmaceuticals Inc. for $5.2 billion in January. — KATHELEEN CONTI

TELECOMMUNICATIONS

T-Mobile continues its growth

T-Mobile US Inc.’s popularity among wireless consumers continued as the fastest-growing mobile carrier exceeded subscriber estimates and again raised its forecast for customer growth this year. T-Mobile expects to add 3 million to 3.6 million customers this year, up from an April forecast of 2.8 million to 3.5 million, the Bellevue, Wash.-based carrier said in a statement Wednesday. The company raised its profit outlook for 2017, suggesting that promotions, price cuts, and giveaways needed to attract new customers aren’t hurting the bottom line. The results show T-Mobile emerging as a winner in an industry price war that has every major competitor offering phone discounts and unlimited data plans. The company’s ability to take market share from rivals has put it at the center of consolidation talks, including preliminary discussions with Sprint. — BLOOMBERG NEWS

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FAST FOOD

Chipotle’s problems continue

Chipotle Mexican Grill Inc.’s rough week isn’t over yet. Shares of the burrito chain fell for a fifth day after it was hit by a new wave of damaging reports, dragging the stock down to its lowest level since last November. The number of people who claim to have been sickened at a Chipotle location in Virginia has now climbed above 130. And in Texas, customers complained about rodents dropping from the ceiling of a restaurant. The negative headlines have tarred what was supposed to be a marketing coup for the Denver-based company. It rolled out a new campaign on Wednesday featuring RZA of the Wu-Tang Clan, aiming to tout the quality of the chain’s ingredients. — BLOOMBERG NEWS

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GOVERNMENT

Republicans want to block rule allowing consumers to sue banks, credit unions

Republicans are targeting a rule that would let consumers band together to sue their banks or credit card companies rather than use a mediator to resolve a dispute. The Consumer Financial Protection Bureau finalized the rule last week. The rule bans most types of mandatory arbitration clauses, which require customers to use a mediator. The agency said people who otherwise have to go it alone in resolving a financial dispute should be able to join others in a class-action lawsuit to pursue a remedy to their complaint. Republicans said Thursday that going that route will increase the costs of borrowing for millions of consumers while enriching trial lawyers who file the lawsuits. They filed legislation that would allow a simple majority of each chamber to vote to disapprove the rule. While they’ve succeeded in overturning more than a dozen regulations finalized in the final months of Barack Obama’s presidency, this is the first time Republicans aim to overturn a rule put into effect with President Trump in office. Of course, the Trump administration isn’t fond of the agency that issued the rule and has called for its restructuring. — ASSOCIATED PRESS

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TECHNOLOGY

Apple software update targets security flaw

Apple has released a software update to iOS and macOS that you should download right away. The security update patches a dangerous vulnerability in Wi-Fi chips that allows hackers to ‘‘execute arbitrary code’’ — industry-speak for taking over your device. Through the Wi-Fi chip, a hacker may be able to control your device’s processor, the central computer that runs everything else. To take advantage of the flaw, known as Broadpwn, all an attacker has to do is get within range of your Wi-Fi device, said Nitay Artenstein, the security researcher at Exodus Intelligence who discovered the problem and reported it. The flaw affects millions of Apple and Android devices; Google’s Android team released a patch for that platform earlier this month. Artenstein will present details of his findings at the Black Hat security conference next week. — WASHINGTON POST

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FAST FOOD

McDonald’s to offer afternoon treats

To lure more mid-afternoon customers, McDonald’s is rejecting its recent health-food kick and rolling out the sweets: croissants, muffin tops, and a new sundae-topping station for ice cream lovers. The challenge is daunting. The hours between lunch and dinner are a fast-food dead zone. Only about 5 percent of McDonald’s customers show up at non-meal times such as 2 p.m. to 5 p.m., according to Peter Saleh, an analyst with BTIG in New York. At a time when its standing as the country’s dominant fast-food restaurant has weakened — its share of the market slipped to 15.1 percent last year from 17.5 percent five years earlier, according to Euromonitor — chief executive Steve Easterbrook has identified snacking and coffee as ‘‘underdeveloped opportunities’’ that could spur growth. — BLOOMBERG NEWS

TOBACCO

Philip Morris sales drop as smoking declines

Philip Morris International Inc. missed profit forecasts as demand for traditional cigarettes continues to dry up, with smokers either quitting or opting for alternative products. The company shipped fewer cigarettes again last quarter and lowered its outlook for the year, sending the stock down Thursday. Shipments of traditional cigarettes fell more than 7 percent, following an 11.5 percent decline in the first quarter of 2017. The second-quarter drop was partly offset by demand for its heated tobacco units, but not enough to encourage investors. — ASSOCIATED PRESS

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MORTGAGES

Rates decline after two weeks of increases

Long-term US mortgage rates declined this week after two straight weeks of increases. The benchmark 30-year rate slipped back below the significant 4 percent level. Mortgage buyer Freddie Mac said Thursday that the rate on 30-year, fixed-rate mortgages fell to an average 3.96 percent from 4.03 percent last week. It stood at 3.45 percent a year ago and averaged a record low 3.65 percent in 2016. The rate on 15-year, fixed-rate home loans, popular with homeowners who are refinancing their mortgages, eased to 3.23 percent from 3.29 percent last week. — ASSOCIATED PRESS