Sex, Drugs and Aegerion (AEGR)

Aegerion Pharmaceuticals (NASDAQ: AEGR) shares plunged an unprecedented 41% on Friday after the maker of cholesterol lowering drug JUXTAPID reported disappointing third quarter results and lowered 2014 JUXTAPID net product sales guidance to between $150 and $160 million versus its previous expectations of $180 and $200 million.

While the warning shocked Wall Street and promoted five downgrades, investors are pointing to another item that is said to be contributing to the vast sell-off is the stock - the character of CEO Marc Beer.

Mr. Beer was recently alleged to be involved with a drug-induced, sex romp involving Jefferies' embattled executive Sage Kelly. Kelly's estranged wife Christina Di Mauro alleged in an ongoing custody battled that Kelly pressured her into having sex with Beer and his girlfriend to win business from Beer and Aegerion.

In an affidavit obtained by the New York Post, Di Mauro described the 2012 encounter as follows:

While investors were giving Mr. Beer the benefit of the doubt, the disappointing third quarter results and outlook have them singing a different tune.

Shares have stabilized on Monday and last traded up 2.7% to $20.72.

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