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Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: Trey McAtee who wrote (15935)	4/22/1999 8:01:00 AM
From: Anthony Tsai	Read Replies (2) \| Respond to of 21342

04/21 5:19P (DJ) =SEC Files Share-Dumping Suit Vs Ex-Westell Worker Story 8185 (WSTL, I/CMT, I/TEL, G/SEC, N/DJN, N/DJWI, N/DJS, N/WAL, N/TEC...) By James P. Miller CHICAGO (Dow Jones)--The Securities and Exchange Commission filed suit against a former Westell Technologies Inc. (WSTL) employee, alleging she violated securities law by dumping her Westell stock when she knew before the public did that the company had lost out in the bidding for an important contract. The suit, filed in federal court here, names as a defendant Cindy G. Hamer, who was a sales director for the Aurora, Ill., company in 1996. The complaint notes that Hamer has consented - without admitting or denying any wrongdoing - to a judgment that calls for her to disgorge the modest amount she gained by her alleged insider trading, and to pay a civil fine. In 1996, the suit says, Westell was one of three finalists in the bidding for the contract to supply a consortium of Baby Bell phone companies with high-speed data transfer equipment. Westell had total sales in fiscal 1996 of about $80 million, the SEC suit notes, and the consortium contract, which would yield hundreds of millions of dollars in orders over five years, would have "materially" bolstered the company's sales. Westell learned in the morning of that day that another vendor had been chosen, but no public announcement was made until the consortium announced its choice after the close of the market that day. Hamer, the suit says, sold all 750 of her Westell shares after the conference call. Westell shares closed that day, a Friday, at $46.375 apiece, the suit notes. On the following Monday, news of the failed bid sent the stock down $12.375, to a close of $34. The SEC asks the court to issue a judgment that will require Hamer to disgorge the $9,281 loss she allegedly avoided through her stock sale, and to have her pay a civil penalty in the same amount. It also seeks $1,901 in prejudgment interest. -By James P. Miller; 312-750-4116 (END) DOW JONES NEWS 04-21-99 05:19 PM Additional Codes (M/TEC, P/DTE, R/IL, R/NME, R/US, R/USC)