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Litigation Release No. 19419 / October 6, 2005

Securities and Exchange Commission v. Ken C. Chow, et al., (Case No. C-01-21067 JW) (N.D. Cal.)

The Securities and Exchange Commission ("Commission") announced today that on December 20, 2002, United States District Court Judge James Ware entered a Final Judgment of Permanent Injunction and Other Legal and Equitable Relief against defendant Ken C. Chow ("Chow"). That Final Judgment followed a settlement in which Chow agreed to $200,025 in disgorgement, $32,455.36 in prejudgment interest and $200,025 in penalties to the United States Treasury based upon allegations that on March 6, 2000, Chow placed an order to buy 4000 shares of nVIDIA Corporation common stock for $247,289 after receiving an email from the company's president that nVIDIA had received a contract from Microsoft Corporation to produce the graphics chip for the Xbox game counsel.

Without admitting or denying the Commission's allegations, Chow agreed to disgorge the $200,025 in trading profits on his stock purchase, along with $32,455.36 in interest on those profits. Chow also agreed to pay an insider trading penalty of $200,025. The Final Judgment also provides for a permanent injunction prohibiting Chow's violation of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The lawsuit was originally filed against Chow in November 2001.

For more information regarding the Commission's complaint filed in November 2001, see Litigation Release No. 17243 (November 19, 2001).


Modified: 10/06/2005