SEC v GERHARD ANDLINGER, JEANNE ANDLINGER, SALLIE DONNER, et al


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Keywords & Phrases

CaseNo: LR-18383, Defendant: Gerhard Andlinger, Jeanne Andlinger, Sallie Donner, Suzanna Dailey and Louis B. Lloyd, Plaintiff: SEC, State: MA Massachusetts, UniqueCaseRef: SEC>LR-18383, Netoptix, Andlinger, Complaint, Stock, Corning, Complaint Alleges, Donner, Dailey, Lloyd, Settle, Trading, Disgorgement, Jeanne Andlinger, Judgement, Profits, Insider Trading Action, Civil, Penalties, Securities, Exchange Commission, Purchase, Public Company, Sold, Allegations, Entry, Serving, Officer, According, Netoptix Shares , ContentID: 120255271

Case Documents

2003-10-01

SEC LITIGATION RELEASE
[ see first page and extracted highlights below ] ItemID: 132561

2 pages
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Total Documents: 1 document , 2 pages

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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS

ANDLINGER
COMPLAINT
STOCK
DEFENDANTS
CORNING
COMPLAINT ALLEGES
DONNER
DAILEY
LLOYD
SETTLE
TRADING
DISGORGEMENT
JEANNE ANDLINGER
JUDGEMENT
PROFITS
INSIDER TRADING ACTION
CIVIL
PENALTIES
SECURITIES
EXCHANGE COMMISSION
PURCHASE
PUBLIC COMPANY
SOLD
ALLEGATIONS
ENTRY
SERVING
OFFICER
ACCORDING
NETOPTIX SHARES

SEC Files Settled Insider Trading Action Against Former CEO of Netoptix
Corp. and Four Tippees

Defendants Agree to Pay Over $3.4 Million in Disgorgement and Civil
Penalties

U.S. Securities and Exchange Commission

Litigation Release No. 18383 / October 1, 2003

, Case No. 03-14288-CIV-Middlebrooks (S.D. Fla., filed October 1, 2003).

   The Securities and Exchange Commission (Commission) announced that on
   October 1, 2003, it filed a settled insider trading action involving
   trading in the common stock of Massachusetts-based NetOptix Corp., now
   known as Corning NetOptix, Inc. (hereinafter, NetOptix). The
   Commission's complaint alleges that in January 2000, NetOptix's former
   CEO, Gerhard Andlinger, learned that Corning Inc. was interested in
   acquiring NetOptix, and that certain of his relatives (including his
   wife and two sisters-in-law) and the owner of a registered
   broker-dealer illegally obtained that information from him. The
   complaint alleges that after receiving that information, those
   individuals illegally purchased NetOptix stock. In settling the
   Commission's action, the defendants, without admitting or denying the
   allegations in the complaint, have agreed to injunctive relief, to pay
   disgorgement and civil penalties totaling over $3.4 million, and to
   the entry of an order barring Andlinger from serving as an officer or
   director of a public company for five years.

   The Commission's complaint alleges that during the week of January 17,
   2000, Andlinger learned that Corning was interested in acquiring
   NetOptix. According to the complaint, after learning of this
   information, Andlinger's wife Jeanne Andlinger, his sisters-in-law
   Sallie Donner and Suzanna Dailey, Louis B. Lloyd (the owner of a
   registered broker-dealer), and four other relatives or employees of
   the Andlingers, bought more than $2.8 million in NetOptix stock
   between January 21 and January 24, 2000.

   According to the complaint, the purchase of these NetOptix shares came
   just one week after some of the defendants sold most or all of their
   NetOptix holdings (which they had purchased in 1998, 1999 or early
   2000). The Commission's complaint alleges that Donner, Dailey and
   Lloyd sold their NetOptix stock after Andlinger expressed the opinion
   that NetOptix's stock was over-valued.

   Corning publicly announced on February 14, 2000 that it would acquire
   NetOptix. Although only one of the traders sold their stock at that
   time, and most have continued to hold their stock (which is now

SNIPPETS:

SEC Files Settled Insider Trading Action Against Former CEO of Netoptix Corp. and Four Tippees

Defendants Agree to Pay Over $3.4 Million in Disgorgement and Civil Penalties

U.S. Securities and Exchange Commission

The Commission's complaint alleges that in January 2000, NetOptix's former CEO, Gerhard

The complaint alleges that after receiving that information, those individuals illegally

In settling the Commission's action, the defendants, without admitting or denying the

According to the complaint, the purchase of these NetOptix shares came just one week after

The Commission's complaint alleges that Donner, Dailey and Lloyd sold their NetOptix stock

Although only one of the traders sold their stock at that time, and most have continued to

Andlinger, Jeanne Andlinger, Donner and Dailey, all of Vero Beach, Florida, and Lloyd, of New

Under the terms of the settlement, the defendants consented to the entry of a final judgment

The judgment also orders Jeanne Andlinger, Donner, Dailey and Lloyd to disgorge approximately

the judgment bars Andlinger from serving as an officer or director of a public company for a


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