U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20453 / February 11, 2008
Securities and Exchange Commission v. William G. Williams, Civil Action No. 08-CIV-20342 (S.D. FL.)
Securities and Exchange Commission Charges Individual With Insider Trading in Chemed Corporation
The Securities and Exchange Commission today announced that it filed a complaint in the United States District Court for the Southern District of Florida against William G. Williams ("Williams") for unlawful insider trading in the securities of Chemed Corporation ("Chemed"). Chemed, a Delaware corporation headquartered in Cincinnati, Ohio, operates in the healthcare field through a Florida-based subsidiary.
The Commission's complaint, filed on February 7, 2008, alleges that, shortly before the April 30, 2007 post-closing public announcement regarding Chemed's quarterly earnings and improved 2007 guidance numbers (the "Announcement"), Williams misappropriated material non-public information concerning the earnings and guidance from a senior financial executive officer while in Florida. The complaint alleges that, on the basis of this material, non-public information, Williams purchased Chemed common stock. According to the complaint, the price of Chemed shares increased materially after the Announcement, and Williams sold his Chemed shares, realizing illicit profits of approximately $28,550.
Without admitting or denying the allegations in the complaint, Williams consented to the entry of a final judgment that permanently enjoins him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgment also orders him to pay $28,550 in disgorgement of his illegal trading profits, plus $1,156 in prejudgment interest, and to pay a civil penalty in an amount equal to his trading profits.