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U.S. Securities and Exchange Commission


Litigation Release No. 21139 / July 17, 2009

Securities and Exchange Commission v. Blue Bottle Limited and Matthew C. Stokes, 07 Civ. 01-CV-1380 (CSH) (KNF) (S.D.N.Y.)

Commission Voluntarily Dismisses All Claims Against Matthew Charles Stokes

The Securities and Exchange Commission announced that on July 14, 2009, the United States District Court for the Southern District of New York entered an order dismissing without prejudice all claims in this action against defendant Matthew Charles Stokes and vacating the default judgment previously entered against him on April 24, 2007. The District Court's order was based upon the Commission's stipulation of dismissal voluntarily dismissing its claims against Stokes. The previously-entered judgment against Blue Bottle Limited is not affected by the order. That judgment was based upon the Commission's allegation that Blue Bottle employed devices, schemes, or artifices to defraud in trading in the securities of at least 12 issuers shortly before the publication of news releases. The judgment enjoined Blue Bottle, a Hong Kong chartered company, from violations of the antifraud provisions of the federal securities laws, and ordered it to pay $2,707,177 in disgorgement of profits from the illegal trading, $18,047 in prejudgment interest, and an $8,121,561 million penalty equal to three times the profits from the illegal trading.

For further information, please see Litigation Release No. 20095 (April 27, 2007), Litigation Release No. 20047 (March 16, 2007) and Litigation Release No. 20018 (February 26, 2007).



Modified: 07/17/2009