USSEC
U.S. Securities & Exchange Commission v. Talbot
Opinion
Opinion
Morrow, J.
ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT AND DENYING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT
On June 24, 2004, plaintiff U.S. Securities and Exchange Commission (the “SEC”) filed this action against defendant J. Thomas Talbot, alleging that defendant had traded on nonpublic information in violation of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. § 78j(b), and Exchange Act Rule 10b-5 (“Rule 10b-5”), 17 C.F.R. § 240 .10b-5. The SEC asserts that, in his position as a director of Fidelity National Financial,' Inc., Talbot learned material nonpublic information regarding the possible acquisition of LendingTree, Inc., and traded on the information, realizing a profit of $67,881.20. The SEC seeks an order requiring Talbot to disgorge this profit ■with prejudgment interest and to pay civil penalties. It also seeks an order enjoining Talbot from violating the securities laws in the future, and from serving as an officer or director of a publicly held company. The parties have now filed cross-motions for summary judgment.
I. FACTUAL BACKGROUND
Defendant J. Thomas Talbot is a sixty-nine or seventy year-old businessman who resides in…