A former NBTY Inc director and four co-defendants have agreed to pay more than $500,000 to settle charges that they used illegal tips to trade in the vitamin maker's stock before it was acquired by Carlyle Group LP for $4 billion in 2010. The deal resolves allegations brought by the U.S. Securities and Exchange Commission that Glenn Cohen, a former NBTY board member, learned that Carlyle was in negotiations to purchase the company and shared the information with his brothers and a brother's girlfriend.The five defendants reaped $175,000 in illicit profits as a result of insider trading, according to the SEC.Besides Glenn Cohen, the SEC sued his brothers, Craig, Marc and Steven, as well as Laurie Topal.The defendants did not admit or deny wrongdoing as part of the settlement, which still requires approval from U.S. District Judge John Keenan in Manhattan federal court.
Shares of CG fell by 0.19% or $-0.058/share to $31.21. In the past year, the shares have traded as low as $23.85 and as high as $39.38. On average, 822214 shares of CG exchange hands on a given day and today's volume is recorded at 91295.
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