U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19654 / April 13, 2006
Securities and Exchange Commission v. Garner Anthony, Civil Action File No. 1:06-CV-00195-DAE-KSC (D. Haw.)
SEC Charges Former CEO of Cox Enterprises, Inc. with Insider Trading in Advance of Going Private Tender Offer to Cox Communications, Inc.
On April 11, 2006, the Securities and Exchange Commission filed an insider trading complaint against Garner Anthony. Anthony, 76, is the former chairman and chief executive officer of Cox Enterprises, Inc. ("Enterprises"). The Commission's complaint, which was filed in the United States District Court for the District of Hawaii, alleges that Anthony, while in possession of material nonpublic information concerning the 2004 tender offer from Enterprises to its publicly traded subsidiary Cox Communications, Inc. ("Cox"), instructed his broker to purchase 10,000 shares of Cox in an account that Anthony controlled. After Enterprises publicly announced its tender offer to Cox, the price of Cox shares increased substantially. Anthony thereafter sold all shares of Cox in accounts he controlled, resulting in illegal insider trading profits of $50,900.
Without admitting or denying the allegations in the complaint, Anthony consented to the entry of a proposed final judgment, pending approval by the court, that would permanently enjoin him from future violations of Section 14(e) of the Securities Exchange Act of 1934 and Rule 14e-3 thereunder. Anthony also agreed to disgorge $50,900, plus prejudgment interest, and to pay a one-time civil penalty of $50,900.
The Commission acknowledges the assistance provided by the New York Stock Exchange in connection with this matter.