The press speculated there were multiple bidders for the company and that the price would hit $14 to $16 per share. In fact, Infor was the only interested party and the deal closed at $11.25 per share. William Lawson, knowing that Infor would not increase its share, took advantage of market speculation and sold more than 1 million in his family's shares in the software company at $12.25 per share. William Lawson recommended the sale to a third party, who sold more than 400,000 shares at $12.25 per share. Cerullo sold about 175,000 shares at $12.15 per share. Richard Lawson agreed to pay $1.6 million for tipping of the two, equivalent to Cerullo and William Lawson's gain. William will pay $1.85 million in disgorgement, prejudgment interest of $162,442.60 and a penalty of $1.85 million. Cerullo will pay just under $178,500, interest and a penalty for a total of $362,603.39
SEC: LAWSON CHAIR TIPPED BROTHER Featured
Three cofounders of the former Lawson Software have agreed to pay $5.8 million to settle SEC charges of insider trading. The SEC accused Richard Lawson, chairman of the former Lawson Software, of tipping off his brother and John Cerullo about the impending purchase of the company by Infor. The two were given advance information about terms and passed on that data to a third party before it closed in April 2011. The three made $2 million in profits on their trades. Cerullo and both Lawsons co-founded the software company.
