Shuffle Master, Inc. disclosed today in a Form 8-K filing that its Senior Vice President, R. Brooke Dunn, had received a Wells Notice from the staff of the SEC in connection with an investigation of alleged improper trading in the Company’s stock by an unrelated third party. According to the filing,
The Wells Notice to Mr. Dunn states that the SEC staff intends to recommend that the SEC bring a civil lawsuit against Mr. Dunn for violations of the securities laws, including Section 10(b) of the Securities Exchange Act of 1934, as amended, based upon alleged “tipping” of Company insider information to the third party.
Shuffle Master further disclosed that the company did not receive any Wells Notice and is not a subject of this investigation. Shuffle Master stated that it has required Mr. Dunn to step down as an Executive Officer of the company, and that he has been placed on administrative leave, with pay, pending the outcome of the SEC matter.