LOS ANGELES, March 18, 2015 /PRNewswire/ -- In a sweeping decision today, a federal jury in Santa Ana, CA cleared former NFL star Willie Gault of securities fraud, soundly rejecting all of the Securities and Exchange Commission's (SEC) allegations that Gault committed securities fraud in connection with the purchase and sale of the securities of Los Angeles-based Heart Tronics, Inc. in late 2008.
Defense lawyer George B. Newhouse, Jr., a partner at Dentons, said of the decision, "This is a tremendous victory on behalf of our client, Willie Gault, who has said all along that no intentional misconduct of any kind occurred." Just 30 days after accepting the title co-CEO, Gault was asked to sign and certify a Form 10-Q for the company. The jury found that Gault committed no fraud during his short tenure as co-CEO of the company. In fact, evidence at trial verified Gault's contention that he did not personally gain in any respect from the activities alleged in the SEC's complaint.
The jury did find that Gault was negligent in a couple technical violations, including by signing a Sarbanes-Oxley certification and by circumventing the company's internal controls. However, the jury's verdict exonerated Gault with respect to claims that he knowingly or deliberately violated the securities laws.
Gault is a former NFL wide receiver and Olympic athlete. He played 11 seasons for the Chicago Bears and Los Angeles Raiders. Considered one of the fastest NFL players of all-time, Gault was a member of the Bears team that won Super Bowl XX in 1985, and was also a member of both the summer and winter U.S. Olympic teams.
About Dentons
Dentons is a global law firm driven to provide clients a competitive edge in an increasingly complex and interconnected world. A top 20 firm on the Acritas 2014 Global Elite Brand Index, Dentons is committed to challenging the status quo in delivering consistent and uncompromising quality in new and inventive ways. Dentons was formed by the combination of international law firm Salans LLP, Canadian law firm Fraser Milner Casgrain LLP (FMC) and international law firm SNR Denton. Dentons' clients now benefit from approximately 2,600 lawyers and professionals in more than 75 locations spanning 50-plus countries across Africa, Asia Pacific, Canada, Central Asia, Europe, the Middle East, Russia, CIS and the Caucasus, the UK and the US. The firm serves the local, regional and global needs of a broad spectrum of clients, including private and public corporations; governments and government agencies; small businesses and start-ups; entrepreneurs; and individuals.
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