Judge won't reconsider; InfoSpace founder may owe $245 million
By DAN RICHMAN
SEATTLE POST-INTELLIGENCER REPORTER
A court ruling yesterday left InfoSpace Inc. founder Naveen Jain one step closer to owing the company more than $200 million.
U.S. District Judge Marsha Pechman declined to reconsider her mid-May ruling that Jain, who served as chief executive of the Bellevue Internet-services company from 1996 to December 2002, violated federal law when he bought and sold millions of shares of InfoSpace stock within a six-month period.
Jain
So-called short-swing transactions are illegal for company insiders.
Richard Spoonemore, a Seattle attorney representing InfoSpace, said damages, which could total $245 million with interest, would be paid to the company, not to any individuals.
He said Jain has filed several motions over the last step in the trial process, the actual entry of judgment. Pechman could rule on those by early August, he said.
Jain could appeal any fine imposed under Section 16(b) of the Securities and Exchange Act, but he would have to post a bond that could equal the entire fine, according to Spoonemore.
Jain's attorney, Arthur Harrigan, didn't return a call seeking comment. |
