U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23364 / September 25, 2015
Securities and Exchange Commission v. Morando Berrettini, et al., Civil Action No. 10-cv-1614 (N.D. Illinois)
SEC Obtains Jury Verdict in Its Favor in Insider Trading Case Against Ralph J. Pirtle and Morando Berrettini
The Securities and Exchange Commission announced today that on September 24, 2015, a jury in federal district court in Chicago, Illinois, returned a verdict finding Ralph J. Pirtle and Morando Berrettini liable for insider trading in the stocks of three companies: Lifeline Systems, Inc., Invacare, Inc., and Intermagnetics Corporation.
The Commission’s first amended complaint, which was filed in March 2010, alleged that Pirtle, the former Director of Real Estate for a subsidiary of Royal Philips, NV, (“Philips”), tipped his friend and business associate, Morando Berrettini, about Philips’ plans to acquire the three separate companies in late 2005 and early 2006. On each occasion, following the tip, Berrettini purchased shares in the companies. According to the Commission’s complaint, Berrettini made profits of approximately $240,000 on his trades.
The jury found Pirtle and Berrettini liable under Counts I through III of the first amended complaint, which alleged insider trading in the stocks of Lifeline, Invacare and Intermagnetics, respectively, in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Consistent with the Judge’s instructions, the jury did not consider Counts IV through VI against Berrettini, which were pled in the alternative. The Court will decide the issue of remedies at a later date.
The trial team from the Commission’s Chicago Regional Office consisted of trial attorneys Steven Seeger and Jonathan Polish and paralegal Lynette Nichols-Newman.
The Commission acknowledges the assistance of the Financial Industry Regulatory Authority in this matter.
For additional information, please see Litigation Release No. 21472 (April 1, 2010).