The U.S. Securities and Exchange Commission settled an insider trading case against four individuals, including the former vice president of real estate at Dick's Sporting Goods Inc., related to the DKS acquisition of Galyan's Trading Company in 2004.
Last October, the SEC accused seven individuals of using confidential information about Dick's Sporting Goods' plans to buy Galyan's Trading Company in 2004. According to the SEC lawsuit, Joseph Queri Jr., the former VP of real estate for Dicks SG, tipped off a friend about the impending purchase of Galyan's. The lawsuit said the men purchased the stock at $11.10 per share in June 2004. After the acquisition was announced a week later, the stock was worth $16.68 per share. According to the SEC, the seven made a combined profit of $274,614.76.
Without admitting or denying the allegations in the complaint, Joseph A. Federico, Philip J. Sima, Mark J. Costello and Franko J. Marretti III consented to the entry of a Final Judgment in which they are permanently enjoined from future violations of the antifraud provisions of certain securities laws and paid fines, interest and penalties.
