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U.S. Securities and Exchange Commission


Litigation Release No. 20130 / May 25, 2007

SEC v. Roger D. Blackwell et al, 03-CV-63

SEC Settles With Christian Blackwell for Illegal Insider Trading in Worthington Foods, Inc. Stock; Dismisses Dale Blackwell

On May 24, 2007, the United States District Court for the Southern District of Ohio entered Final Judgment against Defendant Christian Blackwell, a resident of Columbus, Ohio, for illegal insider trading in the stock of Worthington Foods, Inc. The Court entered a permanent injunction from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder against Christian Blackwell, and ordered him to pay disgorgement of $4,317.01, prejudgment interest of $1,996.87 and a civil penalty of $4,317.01. Christian Blackwell settled the Commission's claim without admitting or denying the allegations in the Complaint.

In its Complaint, the Commission alleged Christian Blackwell purchased 388 shares of Worthington common stock after being tipped by his father, Roger D. Blackwell, about Kellogg Company's proposed acquisition of Worthington Foods, Inc. As a result, the Commission alleged that Christian Blackwell made $4,317.01 in ill-gotten profits by illegally trading on the inside information. (See Litigation Release No. 17944, January 21, 2003).

The Commission also separately dismissed its claim against Defendant Dale Blackwell, the father of Roger D. Blackwell. The Commission is continuing the litigation against the remaining defendants in this case.



Modified: 05/25/2007