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                SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C.

Litigation Release No. 14779 / January 16, 1996

SECURITIES AND EXCHANGE COMMISSION V. CHARLES BRUMFIELD, JOSEPH
BRUMFIELD, ROBERT ALLEN, WILLIAM MYLETT, JOSEPH PENNA, JOSEPH
CUSIMANO, ALFRED VOLPE, JAMES GALANTE, THOMAS ALGER, JOHN
O'BRIEN, LAWRENCE FRIEDMAN, ROBERT FLANAGAN, THOMAS FLANAGAN,
SHARON SEIDEN, WARREN SMITH, JOHN LYNCH, AND ALBERT BRODY, United
States District Court for the Southern District of New York, Civ.
Action No. 95-9283 (JES).

     On January 3, 1996, the United States District Court for the
Southern District of New York entered Final Judgments of
Permanent Injunction and Other Equitable Relief against Lawrence
Friedman and James Galante for violations of the federal
securities laws in connection with their respective trading in
two AT&T acquisition targets -- Digital Microwave Corporation and
Teradata Corporation.  Without admitting or denying the
allegations in the Complaint, filed on October 31, 1995, Friedman
and Galante consented to the entry of an injunction, disgorgement
of their profits of $19,304.00 and $2,934.24, respectively, plus
prejudgment interest, and a one time penalty of $18,831.79 and
$2,065.24, respectively.

     The Commission's Complaint alleges that on or about March
1991, Charles Brumfield, at the time a Vice President in AT&T's
Human Resources Department, learned material, non-public
information about AT&T's plans to acquire Digital Microwave.
Brumfield, in breach of the duty he owed AT&T, told Thomas Alger
(his close friend and subordinate at AT&T) and Joseph Cusimano
(Brumfield's friend) about AT&T's acquisition plans for Digital.
Alger, in breach of the duty he owed AT&T, in turn, told his
friend Friedman about AT&T's acquisition plans, and Friedman,
while in possession of this information, purchased Digital stock.

Cusimano told his friend Alfred Volpe about AT&T's acquisition
plans, and Volpe told his friend Galante who purchased Digital
stock while in possession of this information.  In or about the
first week of April 1991, after Brumfield learned that AT&T had
abandoned its planned acquisition of Digital, Brumfield told
Alger and Cusimano that AT&T had abandoned its acquisition plans
for Digital.  Alger told Friedman to sell the Digital stock.
Cusimano told Volpe that AT&T had abandoned its acquisition plans