SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16987 / May 3, 2001

SECURITIES AND EXCHANGE COMMISSION v. DANIEL R. DUGAN, United States District Court for the District of Columbia, Civil Action No. 1:01CV00940, Filed May 2, 2001

SEC FILES SETTLED INSIDER TRADING ACTION AGAINST DANIEL R. DUGAN

On May 2, the Securities and Exchange Commission filed civil fraud charges in the United States District Court for the District of Columbia against Daniel R. Dugan, alleging insider trading in the securities of Acuson Corporation prior to the September 27, 2000 announcement that Siemens Medical Engineering Group would make a tender offer for all of Acuson's outstanding common stock at $23.00 per share. Dugan was the President of Acuson from November 1997 through February 2000.

The Commission´s complaint alleges that, prior to the public announcement of the tender offer, Dugan learned that Acuson was about to be acquired by Siemens Medical. According to the complaint, Dugan, while in possession of this material, non-public information, purchased a total of 88,800 shares of Acuson common stock on September 26. Of these shares, 40,000 were acquired even though Dugan had made a bona fide attempt to cancel the trades that same day. Following the public announcement on September 27, Acuson shares closed at $22.55, up 43% from the previous trading day. Dugan sold all of his Acuson shares on September 27, making a profit of $648,101.60, consisting of $360,848.85 from the intended purchases and $287,252.75 from the unintended purchases.

Dugan, without admitting or denying the allegations in the Commission´s complaint, consented to the entry of a final judgment permanently enjoining him from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, and ordering him to pay $648,101.60 in disgorgement, prejudgment interest of $4,860.76, and a civil penalty of $360,848.85. The Commission acknowledges the assistance provided by the New York Stock Exchange in connection with this matter.