U.S. Securities and Exchange Commission
Washington, DC

Litigation Release No. 15721 / April 24, 1998

SECURITIES AND EXCHANGE COMMISSION v. GREG E. SKUDLARICK (United States District Court for the Northern District of Illinois, No. 98 C 2421).

The Securities and Exchange Commission announced that it filed a complaint today in the United States District Court for the Northern District of Illinois against Greg E. Skudlarick (Skudlarick) for violations of the antifraud provisions of the federal securities laws arising out of insider trading in the securities of Aksys, Ltd. (Aksys), a company in the business of developing and marketing hemodialysis products. The Complaint alleged violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Simultaneously with the filing of the Complaint, Skudlarick, without admitting or denying the SEC's allegations, consented to a permanent injunction and agreed to pay a total of $11,838 in disgorgement, $11,838 in a civil penalty, and prejudgment interest.

According to the Complaint, on June 4, 1997, Skudlarick, an independent consultant working at Aksys, Ltd. (Aksys), attended a meeting at Aksys during which he received material non-public information regarding the company's plans to delay submission of its personal hemodialysis system, known as the "PHD System," to the Food and Drug Administration for approval. On June 4, 1997 and June 5, 1997, the Complaint alleges, Skudlarick purchased Aksys put option contracts while he was in possession of the material non-public information. The Complaint further alleges that Aksys publicly announced the delay on June 6, 1997, resulting in a decline in the price of Aksys stock, and that thereafter, on June 6, 1997 and June 7, 1997, Skudlarick exercised some options and sold the remaining options, profiting by $11,838.