LITIGATION RELEASE No. 17917 / January 7, 2003
Securities and Exchange Commission v. Scott K. Ginsburg, Civil Action No. 99-8694-CIV-RYSKAMP (S.D.Fla. West Palm Beach Div.)
The Securities and Exchange Commission today announced that on December 19, 2002, District Judge Kenneth L. Ryskamp of the Southern District of Florida overturned the jury's verdict in SEC v. Scott K. Ginsburg, Civil Action No. 99-8694-CIV-Ryskamp (S.D. Fla.), when the court granted the defendant's renewed motion for judgment in favor of the defendant and against the Commission, and found defendant Scott K. Ginsburg not liable for the securities law violations alleged by the Commission. In addition, the court vacated its prior imposition of a $1 million civil penalty against the defendant.
In its complaint, the Commission alleged that in July 1996, Scott Ginsburg violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder by tipping material nonpublic information concerning a proposed sale of EZ Communications, Inc. The Commission also alleged that in June 1997 the defendant violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder by tipping material nonpublic information concerning a proposed sale of Katz Media Group, Inc. Previously, on March 30, 2002, Mark Ginsburg and Jordan Ginsburg settled the Commission's insider trading charges against them, without admitting or denying the Commission's allegations, by consenting to the entry of final judgments that included permanent injunctions, disgorgement, prejudgment interest and civil money penalties totaling over $4.7 million. For further information, please see Litigation Release No. 17612 (July 15, 2002), Litigation Release No. 17482 (April 23, 2002), Litigation Release No. 17455 (April 4, 2002), and Litigation Release No. 16275 (September 9, 1999).