U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21287 / November 6, 2009

Securities and Exchange Commission v. Joseph A. Fontanetta et al., Civil Action No. 08 CV 5110 (S.D.N.Y.)

On September 24, 2009, following a ten day trial, including three days of deliberation, the jury in the Commission's civil action against Joseph A. Fontanetta pending in the United States District Court for the Southern District of New York informed the court that it was deadlocked and was unable to reach a verdict. The Court declared a mistrial and set a re-trial date of November 16, 2009. On November 2, 2009, the Commission and the Defendant entered into joint stipulation resulting in the dismissal of the case.

The complaint, filed June 4, 2008 alleged that Fontanetta, the Chief Executive Officer and board member of a privately-held medical instrumentation company, tipped material nonpublic information about Animas' merger to Burr McKeehan, a retired podiatrist, two days prior to the merger announcement. The complaint also alleged that Fontanetta either misappropriated or unlawfully received the material nonpublic information from a fellow board member at his company who was the husband of an Animas executive and privy to the merger negotiations.

Without admitting or denying the allegations of the complaint, McKeehan consented to the entry of a final judgment, permanently enjoining him from violating the charged provisions, and ordering him to pay disgorgement of $183,018, plus prejudgment interest of $18,059, and a civil penalty of $183,018.