U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20262 / August 31, 2007
SEC v. Thomas J. Bucknum, Civil Action No. 06-10065-PBS (D. Mass.)
SEC Announces $3 Million Fair Fund Distribution to Purchasers of Biogen Idec Common Stock
The Securities and Exchange Commission announces the distribution of approximately $3 million to investors in connection with a settled insider trading action previously brought against Thomas J. Bucknum, former general counsel of Biogen Idec Inc.
On July 19, 2007, the United States District Court for the District of Massachusetts approved the Commission's proposed distribution plan. Pursuant to the distribution plan, persons or entities that purchased shares of Biogen common stock on February 18, 2005, and held such shares through to and until at least February 28, 2005, are eligible to receive monies from the distribution fund.
The Commission's complaint in this matter, filed in January 2006, alleged that, on February 18, 2005, Bucknum sold 89,700 shares of Biogen stock after learning negative information about one of Biogen's major drugs. The Commission's complaint further alleged that when Biogen announced the information publicly on February 28, 2005, the price of Biogen's stock declined as a result.
In February 2006, the Court entered a final judgment by consent, ordering Bucknum, among other things, to pay a total of $3,009,702 in disgorgement of the ill-gotten gains from his trading, pre-judgment interest and civil penalties. In September 2006, the Court appointed Richard J. Yurko as the distribution agent to oversee the establishment of a Fair Fund to distribute these monies to market investors.
The Fair Fund provision of Section 308(a) of the Sarbanes-Oxley Act of 2002 gives the Commission authority to include financial penalties in distributions to harmed investors. To date, the Commission has distributed more than $2.5 billion in Fair Funds.
Questions regarding the distribution should be directed to the distribution agent, c/o Paul Mulholland, Strategic Claims Services, 600 North Jackson Street, Media, Pennsylvania 19063; Telephone (610) 565-9202; Toll Free (866) 274-4004.
For additional information, see Litigation Release No. 19528 (January 12, 2006).