U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18802 / July 27, 2004
Securities and Exchange Commission v. Gary L. Pilgrim, Harold J. Baxter and Pilgrim Baxter & Associates, Civil Action No. 03-CV-6341 (E.D. Pa.)
DISTRICT COURT CASE RESOLVED WITH RESPECT TO PILGRIM BAXTER & ASSOCIATES
On July 20, 2004, the Honorable Harvey Bartle III granted the Commission's motion for voluntary dismissal of its civil injunctive action against Pilgrim Baxter & Associates, Ltd. (PBA). Securities and Exchange Commission v. Gary L. Pilgrim, Harold J. Baxter and Pilgrim Baxter & Associates, Ltd., Civil Action No. 03-CV-6341 (E.D. Pa.). The Commission's action was dismissed with prejudice.
The dismissal was part of the Commission's settlement with PBA pursuant to which the Commission issued a settled administrative and cease-and-desist order (the Commission's Order). In the Matter of Pilgrim Baxter & Associates, Ltd., Admin. Proc. No. 3-11524 (June 21, 2004). The Commission's Order censured PBA; imposed on PBA an order to cease and desist; ordered PBA to complete certain undertakings; and ordered PBA to pay disgorgement in the amount of $40,000,000 and a civil penalty in the amount of $50,000,000, for a total payment of $90,000,000, to be distributed pursuant to Section 308(a) of the Sarbanes Oxley Act of 2002. PBA consented to the issuance of the Order without admitting or denying any of the findings contained therein.
The pending district court action is continuing against individual defendants Baxter and Pilgrim.
For further information about the civil and administrative proceedings, see Litigation Release No. 18474 (November 20, 2003) and Administrative Proceeding File No. 3-11524 (June 21, 2004).