CKX (CKXE) said a former domestic employee of CEO Robert F.X. Sillerman was named as a defendant in a civil complaint filed today by the Securities and Exchange Commission in federal court in Manhattan.
The New York-based entertainment outfit said the complaint alleges that in August of 2004, the employee misused information acquired during his employment for trading in the company's stock, resulting in a profit of $49,525.
The New York Times
reports that the SEC charged Graham J. Lefford, 44, of Waxachachie, Texas. Lefford is also accused of violating a confidentiality agreement he signed at Sillerman's request in 2003, promising not to use any information he learned while an employee for his own profit.
The complaint does not allege misconduct by any present or former employee of the company, CKX said. The company said it was aware of and cooperated fully with the SEC's investigation.
Shares rose 28 cents to $12.