A former director of vitamin manufacturer NBTY Inc, along with his three brothers and a friend, have decided to settle insider-trading claims filed by the US Securities and Exchange Commission today in Manhattan federal court. The charges pertained to NBTY's sale to Carlyle Group in 2010, Bloomberg said in a report.
According to the lawsuit, 54 year-old Glenn Cohen had disclosed to his brothers Craig, Steven, Marc and Marc's girlfriend Laurie Topal about the impending takeover of the Ronkonkoma, Long Island-based company. Cohen had served on the NBTY board from 1998 until the acquisition of Carlyle. Because of the illegal tip, Cohen's brothers and Topal purchased NBTY shares and was able to make $175,000 by selling the stock following the public announcement of the acquisition.
Amelia A. Cottrell, associate director in the SEC's New York Regional Office, said in a statement, "As a board member at NBTY for more than 20 years, Glenn Cohen knew the importance of maintaining the confidentiality of company information. Unfortunately, when presented with exclusive details about an impending sale, he breached his duty to NBTY shareholders in order to enrich his own family members."
The SEC said in a statement on its website that the accused had not admitted nor deny the allegations against them in the settlement. The settlement will be subject to approval by a court.
Lawyer Jeffrey Plotkin at Finn Dixon & Herling LLP, who represents Steven Cohen in the case, has said that his client is pleased that the matter has been resolved. Topal's attorney, David Gourevitch, said that his client was also glad that she can put the matter behind her. Attorneys for Glenn, Marc and Craig, Robert Knuts of Sher Tremonte LLP, Steven D. Feldman and Michael G. Considine, decline or did not immediately responds to Bloomberg's request for comment about the settlement.
