CompuDyne Insider Trading Pact Under Scrutiny

Law360 (May 22, 2007, 12:00 AM EDT) -- Security system maker CompuDyne Corp. and a New York-based brokerage firm that reached a settlement on insider trading charges are both attacking an attempt by a former firm hedge fund manager to nix the agreement.

A hearing is scheduled Wednesday on motions that will determine if the agreement between CompuDyne and First New York Securities LLC and its affiliates will stand.

FNYS has agreed to pay CompuDyne $300,000 to settle claims that the brokerage’s proprietary and hedge fund accounts were used for illegal trading of CompuDyne’s...
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