LAWSUITS NEWS & LEGAL INFORMATION
Insider Trading
Washington, DC: (Apr-29-08) The US Securities and Exchange Commission brought charges against Charles Norton, a former director at Community Bancorp, and his son Chad Norton, alleging that they participated in insider trading. The suit claimed that the Nortons traded in Valley Bancorp stock based on confidential information shortly before the June 2006 announcement that Community Bancorp was acquiring Valley.
SEC officials alleged that Charles Norton learned about Community Bancorp's planned acquisition at a May 2006 company board meeting and later informed his son of the deal. On getting that information, Chad Norton then bought 7,000 Valley Bancorp shares between May 16, 2006, and the Jun. 28, 2006, eventually making a profit of $35,000.
As part of a settlement reached in the case, SEC officials stated that the duo has agreed to pay over $70,000 to settle the insider trading charges. The Nortons settled the case without admitting or denying the charges, but stated that it was an effort to avoid the risks of protracted litigation. [REUTERS: EX-COMMUNITY BANCORP DIRECTOR SETTLES SEC CHARGES]
Published on May-1-08
SEC officials alleged that Charles Norton learned about Community Bancorp's planned acquisition at a May 2006 company board meeting and later informed his son of the deal. On getting that information, Chad Norton then bought 7,000 Valley Bancorp shares between May 16, 2006, and the Jun. 28, 2006, eventually making a profit of $35,000.
As part of a settlement reached in the case, SEC officials stated that the duo has agreed to pay over $70,000 to settle the insider trading charges. The Nortons settled the case without admitting or denying the charges, but stated that it was an effort to avoid the risks of protracted litigation. [
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