U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20770 / October 6, 2008
Securities and Exchange Commission v. Southwestern Medical Solutions, Inc., et al., Civil Action No. 8:08-CV-00731-T-26TBM (M.D. Fla.).
Judgments Entered Against Defendants Southwestern Medical Solutions, Inc., Richard R. Powell, Basil J. Meecham and John R. Hedges
The Securities and Exchange Commission announced that on June 27, 2008, the United States District Court for the Middle District of Florida entered a Final Judgment against Defendant Southwestern Medical Solutions, Inc. The Court also entered Judgments of Permanent Injunction and Other Relief against Defendants Richard R. Powell and Basil J. Meecham on July 24, 2008, and against Defendant John R. Hedges on August 22, 2008. The Judgments, entered by consent, enjoin the Defendants from violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. Additionally, the Judgments bar Powell, Meecham and Hedges from acting as officers or directors of a public company and permanently bar them from participating in any penny stock offering. The Judgments also provide for the imposition of civil penalties in amounts to be determined by the Court upon the Commission's motion.
The Commission commenced this action by filing its complaint on April 17, 2008, against the Defendants. The complaint alleged that the company through its principals issued several false and misleading press releases claiming that the Food and Drug Administration had approved its Labguard diagnostic testing device, it had received an order for several thousand units of the Labguard device, and it had pending patents and trademarks with the U.S. Patent and Trademark Office.
For additional information, see Litigation Release No. 20530 (April 17, 2008).