Litigation Release No. 19962 / January 9, 2007

SEC v. James Tambone and Robert Hussey, Civil Action No. 06-10885-NMG (District of Massachusetts)

The Securities and Exchange Commission today announced that on December 28, 2006, the Hon. Nathaniel M. Gorton of the United States District Court for the District of Massachusetts, acting on defendants' motions, dismissed with prejudice the claims brought against two former executives of Columbia Funds Distributor Inc. in connection with undisclosed market timing arrangements in the Columbia complex of mutual funds.

In its complaint, the SEC had alleged that James Tambone, the former Co-President of Columbia Funds Distributor, Inc., and Robert Hussey, the former Managing Director for National Accounts, violated Section 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The SEC had also alleged that they aided and abetted violations of Section 15(c)(1), Section 10(b), and Rule 10b-5 of the Exchange Act, and of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

For additional information see Litigation Release No. 18590 (February 24, 2004), Litigation Release No. 19069 (February 9, 2005), and Litigation Release No. 19708 (May 22, 2006).