SEC Files Insider-Trading Suit Over TXU Deal

Law360, New York (March 2, 2007, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has filed a lawsuit accusing unknown defendants of violating securities laws by purchasing call option contracts for common stock in TXU Corp. while in possession of insider information about the impending $44 billion acquisition of the energy company.

The SEC’s complaint was filed Friday in federal court in Chicago. Also on Friday, the court issued a temporary restraining order freezing assets held by the defendants, specifically call options purchased on Feb. 21, 22 and 23.

On Feb. 26, TXU’s board...
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