Mary Beth Knight and Rebecca Norton

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23395 / October 28, 2015

Securities and Exchange Commission v. Mary Beth Knight and Rebecca Norton, Civil Action No. 2:11-cv-00973 (DGC) (D. Ariz.)

Court Approves Settlement Concluding Insider Trading Civil Action

The U.S. Securities and Exchange Commission today announced that, on October 27, 2015, the United States District Court for the District of Arizona entered a settled final judgment against Rebecca Norton, the remaining defendant in SEC v. Mary Beth Knight and Rebecca Norton, Civ. 2:11-cv-00973 (DGC) (D. Ariz.). Norton consented to entry of the final judgment, without admitting or denying the Commission's allegations in that action. The Commission's complaint alleged, among other things, that in 2006 Norton engaged in insider trading in the securities of Choice Hotels International, Inc. The other defendant in the action settled with the Commission upon filing and, in connection with that settlement, paid disgorgement of Norton's illicit profits and losses avoided as the result of Norton's trading. In May 2011, Norton, without admitting or denying the allegations in the complaint, consented to full injunctive relief. The determination of a civil penalty against Norton, if any, remained to be determined subsequently by the court. The final judgment entered by the court on October 27, 2015, permanently enjoined Norton from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5, and imposed a civil penalty in the amount of $25,000, to be satisfied by an initial payment of $5,000 and quarterly payments of $5,000 thereafter.

See Litigation Release No. 21972 (May 18, 2011).