P.M. BRIEFING : GAF to Pay $1.25-Million in Suit
GAF Corp. said today it has agreed to pay $1.25 million to settle a civil action with the Securities and Exchange Commission stemming from charges that the chemicals company and its vice chairman manipulated certain stock prices.
In settling the case, GAF and its vice chairman, James Sherwin, did not admit or deny the allegations and promised not to violate any securities laws in the future.
The government has alleged that GAF and Sherwin attempted to boost the stock price of Union Carbide Corp. in October, 1986, just before GAF attempted to sell a large block of Union Carbide shares. The shares had been accumulated by GAF during a failed bid for Union Carbide.
Both GAF and Sherwin were convicted in December on similar charges in a criminal case brought by the government in July, 1988. GAF and Sherwin have maintained their innocence and said they will appeal the criminal case.
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