U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20895 / February 10, 2009

Securities and Exchange Commission v. Joseph J. Queri Jr., Gary M. Gosson, et al., Case No. 2:08-CV-01361-AJS (W.D. Penn.)

Securities and Exchange Commission v. Joseph J. Queri Jr., Joseph J. Queri Sr., et al., Case No. 2:08-CV-01367-AJS (W.D. Penn.)

SEC Settles Insider Trading Charges with Four Individuals

The Securities and Exchange Commission announced that on February 6, the Honorable Arthur J. Schwab, U.S. District Court Judge for the Western District of Pennsylvania entered Final Judgments against four individuals charged with insider trading in advance of Dick's Sporting Goods Inc.'s June 21, 2004, announcement that it intended to acquire Galyan's Trading Company, Inc. via a tender offer. The complaints, which the SEC filed on September 30, 2008, alleged:

• Joseph J. Queri, Jr., who was Dicks' Senior Vice President of Real Estate, tipped his close friend, Gary Gosson, and his father, Joseph Queri, Sr., about the acquisition.

• Gosson, a resident of Syracuse, New York, tipped several friends, including defendants Joseph A. Federico, Philip J. Simao and Mark J. Costello, who all bought shares of Galyans stock.

• Queri Sr., a resident of Las Vegas, Nevada, also tipped several friends, including Gino M. Ferraro. Ferraro tipped his son-in-law, defendant Franko J. Marretti III, who traded and tipped a business colleague.

The day after the public announcement, Galyan's stock closed at $16.68, a 50.3% increase from the previous day's closing price of $11.10.

Without admitting or denying the allegations in the complaint, Federico, Simao, Costello and Marretti consented to the entry of a Final Judgment in which they are permanently enjoined from future violations of the antifraud provisions of the securities laws, Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. Federico also agreed to pay disgorgement of $23,326.00, plus prejudgment interest of $7,540.22, and a one-time civil penalty for trading in the amount of $23,326.00. Simao agreed to pay disgorgement of $13,390.00, plus prejudgment interest of $4,328.37, and a one-time civil penalty for his trading in the amount of $13,390.00. Costello agreed to pay disgorgement of $9,540.00, plus prejudgment interest of $3,083.85, and a one-time civil penalty for his trading in the amount of $9,540.00. Finally, Marretti agreed to pay disgorgement of $9,552.00, plus prejudgment interest of $3,150.92, and a civil penalty for trading and tipping a colleague in the amount of $54,817.00. The Commission has now obtained settlements from nine of the sixteen defendants.

For additional information, please see Litigation Release No. 20765 (October 1, 2008)

http://www.sec.gov/litigation/litreleases/2009/lr20895.htm