1-800-Flowers Investor To Pay $4.9M Of Short-Swing Profits

Law360 (August 22, 2019, 5:27 PM EDT) -- A federal judge ordered a large shareholder of 1-800-Flowers to give up $4.9 million it earned from buying and selling company stock, saying the firm did not qualify for exemptions to the U.S. Securities and Exchange Commission's rules barring short-swing trades by company insiders.

U.S. Magistrate Judge Gary R. Brown of the Eastern District of New York, who heard the case by consent of the parties, said that Raging Capital Management LLC and its affiliates held 10% of 1-800-Flowers' stock when it made trades between April 2014 and May 2015. These short-swing trades violated the SEC's rules, the judge said....

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