Sabby Management, Llc

Allegations: IT APPEARED THAT SABBY MANAGEMENT, LLC ("SABBY") ENGAGED IN PROHIBITED TRADING WHENIT SOLD SHARES DURING A RESTRICTED PERIOD AND PURCHASED SHARES IN AN OFFERING BY COLLABRX, INC. (TICKER: CLRX), WHICH OFFERING PRICED ON FEBRUARY 25, 2015. Status: Final Sanction Detail: SABBY CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF RULE 105 OF REGULATION M OF THE EXCHANGE ACT. DISGORGEMENT OF $184,747.10, PREJUDGMENT INTEREST OF $2,331.51, AND A CIVIL MONEY PENALTY IN THE AMOUNT OF $91,669.95 (FOR A TOTAL OF $278,748.56) TO THE SECURITIES AND EXCHANGE COMMISSION. Summary: ON TWO OCCASIONS BETWEEN DECEMBER 2014 AND FEBRUARY 2015, SABBY BOUGHT (ON BEHALF OF PRIVATE FUND CLIENTS) OFFERING SHARES FROM AN UNDERWRITER OR BROKER OR DEALER PARTICIPATING IN A FOLLOW-ON PUBLIC OFFERING AFTER HAVING SOLD SHORT THE SAME SECURITY DURING THE RESTRICTED PERIOD SET FORTH IN RULE 105 OF REGULATION M UNDER THE SECURITIES EXCHANGE ACT OF 1934. THE SUBJECT TRANSACTIONS RESULTED IN PROFITS OF $184,747.10 FOR SABBY'S PRIVATE FUND CLIENTS. SABBY DID NOT USE THE SHARES PURCHASED TO COVER THE SHARES SOLD SHORT DURING THE RELEVANT RESTRICTED PERIODS, BUT THE SEC NEVERTHELESS ALLEGED AND FOUND THAT THE FOREGOING ACTIVITY VIOLATED RULE 105. THE SEC ORDERED SABBY (I) TO CEASE AND DESIST FROM ANY FUTURE VIOLATIONS OF RULE 105, (II) DISGORGE THE PROFITS (INCLUDING INTEREST) EARNED BY SABBY'S PRIVATE FUND CLIENTS AS A RESULT OF THE TRANSACTIONS, AND (III) TO PAY A CIVIL MONETARY PENALTY $91,669.95. WHEN ISSUING ITS ORDER, THE SEC ACKNOWLEDGED THE REMEDIAL ACTS PROMPTLY UNDERTAKEN BY SABBY AND THE COOPERATION AFFORDED BY SABBY TO THE SEC IN RESOLVING THIS MATTER.