U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21005 / April 17, 2009
Securities and Exchange Commission v. William M. Gallahair, Civil Action No. 4:08-CV-05134 in the United States District Court for the Northern District of California, Oakland Division
COURT ISSUES FINAL JUDGMENT AGAINST FORMER MCKESSON VICE PRESIDENT FOR INSIDER TRADING
The Securities and Exchange Commission announced that on April 10, 2009, the United States District Court for the Northern District of California entered a Final Judgment against Defendant William M. Gallahair, a resident of Newport Beach, California, resolving charges of insider trading in the securities of D&K Healthcare Resources, Inc. The Final Judgment, entered with Gallahair's consent and without admitting or denying the allegations in the Commission's complaint, permanently enjoins him from future violations of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, and orders Gallahair to pay $152,068.45 in disgorgement and prejudgment interest and a civil penalty of $120,170.13.
The Commission's complaint in the matter, filed on November 12, 2008, alleged that Gallahair, a former employee of McKesson Corporation, misappropriated material, non-public information from McKesson about its planned acquisition of D&K through a tender offer and purchased 20,000 shares of D&K stock based on that information approximately two weeks before McKesson publicly announced the tender offer on July 11, 2005. According to the Commission's complaint, Gallahair placed orders to sell all of his shares of D&K stock on the day of McKesson's announcement and realized $120,170.13 in profits from his illegal insider trading.
The Commission acknowledges the assistance and cooperation of the Financial Industry Regulatory Authority with this matter.
For more information, see Litigation Release No. 20804A, November 13, 2008.