SEC Files Settled Insider Trading Case Against John Darden III

SEC v. John M. Darden III, Case No. 1:13-cv-00138-ODE (D. Ga.).  On January 17, 2013, the SEC announced it filed a settled insider trading case against John M. Darden III.  The SEC alleges that Darden obtained inside information about a pending merger from a board member of AirTran Holdings, Inc. (“AirTran”).  Based on the inside information, Darden bought 40,000 common shares and 200 out-of-the-money call options a few days before the public announcement that Southwest Airlines Company and AirTran had entered into a definitive merger agreement.  Darden made $159,160 in profits.  Without admitting or denying the charges, Darden agreed to settle with the SEC by agreeing to entry of a final judgment permanently enjoining him from violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.  He also agreed to pay disgorgement of $159,160, prejudgment interest of $9,387, and a civil monetary penalty of $159,160.

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