SEC v. Skowron, III, et al. Case No. 10-cv-08266-DAB (S.D.N.Y.)

Oct. 14, 2022

On November 2, 2010, the SEC filed a civil action against Dr. Yves M. Benhamou, a doctor and medical researcher who served on a Steering Committee overseeing a clinical drug trial run by Human Genome Sciences, Inc. (HGSI).  On April 13, 2011, the SEC filed an amended complaint. According to the complaint, Benhamou tipped material non-public information about the trial to Dr. Joseph F. Skowron III, who was then a portfolio manager of six healthcare-related hedge funds.  The SEC alleged that Skowron used the information to sell HGSI common shares held in the hedge funds ahead of a January 23, 2008 negative announcement, enabling the funds to avoid substantial losses.

On November 17, 2011, the Court issued final judgments against Skowron and Benhamou, and against the hedge funds as relief defendants.  The defendants paid approximately $35 million in disgorgement, prejudgment interest and civil penalties.  On June 4, 2012, the Court created a Fair Fund to return funds to eligible claimants and appointed Gilardi & Co., LLC as Distribution Agent of the Skowron Fair Fund.

On May 13, 2013, the Court issued an Order approving a Distribution Plan to distribute the approximately $35 million to eligible claimants who purchased HGSI and suffered a Recognized Loss as defined by the Distribution Plan and under the Plan of Allocation.

On March 30, 2016, the Court granted the Commission's motion and entered an order to disburse $255,250.07 from the Fair Fund for distribution to eligible investors. See Order Approving Disbursement.

Whether you have a Recognized Loss for which you will be compensated depends on a number of factors, which are detailed in the Plan of Allocation section of the Distribution Plan. You should read the Plan of Allocation in its entirety before filing a claim.  A final determination as to whether you will receive a payment, and the amount, will be made by the Distribution Agent.

If you believe you are eligible to share in the Skowron Fair Fund, you must submit a completed Proof of Claim Form, along with required supporting documentation, to:

For more information, please contact the Distribution Agent:

Gilardi & Co., LLC
Telephone Number: 877-492-2772

In completing the Proof of Claim Form, you should refer to the Distribution Plan Notice and Proof of Claim Form Instructions.

Your Proof of Claim Form, with supporting documents, must be postmarked by September 24, 2013.

For more information about the SEC's action, you can read Litigation Release Nos. 21721 (Nov. 2, 2010), 21928 (Apr. 13, 2011) and 22158 (Nov. 17, 2011).  Further details may be obtained by visiting the Distribution Agent's website at, sending your inquiries by email to or calling (877) 492-2772.

We have provided this information as a service to investors. It is neither a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in law.

Last Reviewed or Updated: Jan. 19, 2023