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U.S. Securities and Exchange Commission


Litigation Release No. 16510 / April 10, 2000

SEC Files Insider Trading Action Against Minnesota Corporate Executive

Securities and Exchange Commission v. Robert R. Hibbs, Civil Action No. 00-89 (JMR) (D.Minn. April 10, 2000).

The Securities and Exchange Commission today filed a civil injunctive action alleging illegal insider trading by Robert R. Hibbs of Minneapolis, Minnesota, in the stock of Tower Automotive, Inc. and Dura Automotive Systems, Inc., companies for which he served as an officer, and in the stock of two public companies acquired by Dura Automotive. The Complaint, filed in the United States District Court for the District of Minnesota, alleges that, during 1998 and 1999, Hibbs obtained no less than $365,000 in illicit profits by trading in advance of the announcement of corporate acquisitions by Dura Automotive and a positive earnings announcement by Tower Automotive. Hibbs traded through his own account and accounts of relatives.

Simultaneously with the filing of the Complaint, Hibbs consented, without admitting or denying the Complaint's allegations, to a final judgment enjoining him from future violations of certain antifraud provisions of the federal securities laws: Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. Hibbs also agreed to be permanently barred from acting as an officer or director of any public company. In a separate criminal action filed today by the Office of the U.S. Attorney for the District of Minnesota, Hibbs has agreed to disgorge his insider trading profits, with prejudgment interest, and to pay a $500,000 penalty in connection with his insider trading. United States v. Robert R. Hibbs, Crim. No. 00-85 (JMR) (D.Minn. April 10, 2000).

The Commission would like to acknowledge the substantial assistance it received in this matter from the Office of the U.S. Attorney for the District of Minnesota.