Thursday, January 20, 2005

Civil Settlement with Waksal

CNN (Reuters) reports that "[f]ormer ImClone Systems CEO Sam Waksal has agreed to pay a $3 million civil penalty to settle charges over the insider trading case that also involved lifestyle entrepreneur Martha Stewart."  The SEC Release in the case states that "[p]ursuant to this settlement, which is subject to the Court's approval, Sam Waksal and Jack Waksal will be held jointly and severally liable for disgorgement of over $2 million in illegal loss avoidance, including prejudgment interest, and Sam Waksal will be liable for a civil penalty of over $3 million.   The SEC Release also states that  Sam Waksal's consent "to the entry of a final judgment against him" was made "[w]ithout admitting or denying the allegations."

In the meantime, the NYTimes reports that "[s]ince Ms. Stewart's conviction, her company's share price has nearly tripled, increasing the value of her personal stake to an estimated $827 million from $318 million"

(esp)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/01/cnn_reuters_rep.html

Civil Enforcement, Martha Stewart, Securities | Permalink