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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION LENDINGTREE ATTORNEY ALLEGES LAW FIRM SETTLED INSIDER TRADING NORTH CAROLINA COMPLAINT STOCK SECURITIES EXCHANGE DISTRICT BOUGHT ADMITTING DENYING ALLEGATIONS TRANSACTION INTERACTIVECORP EMPLOYMENT SHARES ILLICIT PROFITS THEREUNDER DISGORGE PREJUDGMENT CIVIL PENALTY ASSISTANCE NASD MATTER |
U.S. Securities and Exchange Commission
Litigation Release No. 18361 / September 24, 2003
, No. 3 03CV463 (W.D.N.C.)
SEC Files Settled Insider Trading Case Against North Carolina Attorney
On September 24, 2003, the Commission filed a settled insider trading
case in the United States District Court for the Western District of
North Carolina against Arthur K. Bartlett, an attorney in Charlotte,
North Carolina. The complaint alleges that in April 2003, Bartlett
bought stock in LendingTree, Inc., a client of the law firm with which
he was then associated, after learning that LendingTree would be
acquired by another company. Bartlett settled the charges without
admitting or denying the Commission's allegations.
The Commission's complaint specifically alleges that on April 23,
2003, Bartlett was told by another attorney at his law firm that the
firm was representing LendingTree in connection with a pending
transaction in which LendingTree would be acquired by USA Interactive,
another public company now known as InterActiveCorp. According to the
complaint, the other attorney also asked Bartlett to perform legal
research concerning employment law issues relevant to the transaction.
The Commission alleges that Bartlett then bought 540 shares of
LendingTree common stock at $13 per share. The Commission further
alleges that on May 5, 2003, after the acquisition agreement was
announced, the price of LendingTree's stock rose by approximately 41%,
and Bartlett realized illicit profits of $4,272 by selling his 540
shares that day. The Commission noted that Bartlett's law firm
terminated his employment in July 2003.
Without admitting or denying the Commission's allegations, Bartlett
agreed to the entry of a final judgment that would permanently enjoin
him from violating Section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 thereunder, order him to disgorge $4,272 in
illicit trading profits (plus $71 in prejudgment interest), and order
him to pay a $4,272 civil penalty.
The Commission acknowledges the assistance of the NASD in its
investigation of this matter.
_________________________________________________________________
Modified 09/25/2003
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