Litigation Release No. 16215 \ July 21, 1999

SECURITIES AND EXCHANGE COMMISSION V. CINDY G. HAMER, U.S. District Court for the Northern District of Illinois, Civil Action No. 99 C 2581 (N.D. Ill. April 19, 1999)

The Securities and Exchange Commission announced that on April 19, 1999, it filed a complaint in the United States District Court for the Northern District of Illinois against Cindy G. Hamer, a resident of San Ramon, California. The Complaint alleges that Hamer violated Section 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder in connection with her sale of the securities of Aurora, Illinois based Westell Technologies, Inc. (Westell) while she was in possession of material, non-public information regarding Westell.

The complaint alleges that in the late summer of 1996, Westell was a finalist in a competitive bidding process to supply certain high-speed data transfer equipment to a consortium of buyers (Consortium). The contracts were substantial and could have greatly increased Westell's revenues. On the morning of Friday, October 4, 1996, Westell learned that the Consortium had chosen another company to supply the equipment. At that time, Hamer was one of Westell's regional sales directors. Soon after learning of the Consortium's decision, Hamer sold all of her shares of Westell stock. After the close of the market on October 4, the Consortium publicly announced its selection. On Monday, October 7, the next day of trading, Westell's stock price dropped substantially and continued to fall in the following days. Hamer thereby avoided a loss of $9,281.25 by selling her stock before the public announcement.

Hamer has consented, without admitting or denying the allegations in the Complaint, to the entry of a Final Judgment and Order of Permanent Injunction, Civil Penalties and Other Equitable Relief (Final Judgment) which will enjoin her from future violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The Final Judgment will also require Hamer to disgorge $9,281.25, representing her losses avoided, plus prejudgment interest of $1,901.25. In addition, the Final Judgment will require Hamer to pay a civil penalty of $9,281.25 pursuant to Section 21A of the Exchange Act.

The Commission's investigation into the trading of Westell stock in the days preceding the announcement of the Consortium's selection on October 4, 1996 is continuing.