Securities and Exchange Commission Washington, D.C. LITIGATION RELEASE NO. 15200 / December 30, 1996 SECURITIES AND EXCHANGE COMMISSION v. HAROLD FITZGERALD LENFEST and MARGUERITE LENFEST, United States District Court for the Eastern District of Pennsylvania, Civil Action No. 95-CV-7597 (JCJ) The Securities and Exchange Commission today announced that on December 23, 1996, the United States District Court for the Eastern District of Pennsylvania denied defendant Marguerite Lenfest's Motion for Summary Judgment in the above-captioned insider trading case and upheld the misappropriation theory of insider trading. In its complaint against Mrs. Lenfest, the Commission alleges that Mrs. Lenfest purchased stock in Tele- Communications, Inc.("TCI"), in advance of an announcement that Bell Atlantic Corp. intended to acquire TCI, while she was in possession of information about the acquisition plans. The Complaint alleges that Mrs. Lenfest obtained the information from her husband and co-defendant, Harold FitzGerald Lenfest, who was a member of the Board of Directors of Liberty Media Corporation, a company that was going to be merged into TCI and then acquired by Bell Atlantic Corp. as part of the TCI acquisition. The complaint's allegations against Mrs. Lenfest are based on the misappropriation theory of insider trading. In her Motion for Summary Judgment, Mrs. Lenfest challenged the misappropriation theory, relying on decisions of the Fourth and Eighth Circuit Courts of Appeals. (One of those decisions, United States v. O'Hagan, 92 F.3d 612 (8th Cir. 1996), is currently being challenged by the Department of Justice before the Supreme Court, where a petition for certiorari is pending.) In denying the motion for summary judgment, United States District Court Judge J. Curtis Joyner noted that the misappropriation theory has been adopted by a number of federal Courts of Appeals and has been applied in various circumstances. The Court adopted the theory, as articulated in Securities and Exchange Commission v. Clark, 915 F.2d 439 (9th Cir. 1990), and found that the misappropriation theory could support holding Mrs. Lenfest liable for insider trading. The Commission expects this case to proceed to trial in early 1997. ==========================================START OF PAGE 2====== For other information related to this matter, see Litigation Release No. 14747, dated December 6, 1995.