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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23574 / June 20, 2016

Securities and Exchange Commission v. James S. Hannon, Civil Action No. 1:16-cv-11148 (D. Mass. filed June 20, 2016)

SEC Charges Former Employee with Insider Trading in Stock of the Parent Company of the T. J. Maxx, Marshalls, and Homegoods Retail Chains

The Securities and Exchange Commission today charged James S. Hannon, a former mid-level manager of Massachusetts-based The TJX Companies, Inc., the parent company of retail store chains T.J. Maxx, Marshalls and HomeGoods, with insider trading in TJX stock.

According to the SEC's complaint filed in federal court in Boston, Massachusetts:

  • Hannon, who was the Northeast Regional Vice President for T.J. Maxx from 2011 to 2014, had daily access to confidential information about the company's sales data.
     
  • Hannon purchased TJX stock in advance of press releases announcing favorable sales results and other positive financial information on five occasions in 2012 and 2013.
     
  • Hannon then sold the TJX stock shortly after the stock price increased following the public issuance of the press releases.
     
  • TJX expressly prohibited employees from trading in TJX securities when in possession of material, nonpublic information, explaining that such insider trading violated both company policy and the law.
     
  • Hannon's total profit from his trading was $26,679.

The SEC's complaint charges Hannon with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the SEC's allegations, Hannon consented to the entry of a final judgment that would permanently enjoin him from future violations of Section 10(b) and Rule 10b-5 and require him to pay disgorgement of $26,679, prejudgment interest of $3,008.99, and a civil penalty of $26,679. The settlement is subject to court approval.

SEC Complaint

 

http://www.sec.gov/litigation/litreleases/2016/lr23574.htm


Modified: 06/20/2016