CINCINNATI — The Securities and Exchange Commission has sued Cincinnati stockbroker P. David Herrlinger on charges that he violated federal laws in his fraudulent $6.8-billion takeover bid last month of the Dayton Hudson Corp.
The SEC lawsuit, filed Wednesday in U.S. District Court in Cincinnati, also says Herrlinger profited by trading Dayton Hudson options before and after the bid. The June 23 bid sent the price of the Minneapolis-based retailing corporation's stock to $63 from $54 per share.
The lawsuit asks that Herrlinger, 46, be stopped from making further fraudulent bids and be restrained from destroying documents detailing the incident. It also asks that he surrender any profit.
The suit alleges Herrlinger placed an order through his brother, Thomas Herrlinger, a stockbroker with E. F. Hutton & Co. in Albuquerque, N.M., to buy Dayton Hudson shares on June 22. The following morning, the suit alleges, P. David Herrlinger called the Dow Jones New Service in Cincinnati, identified himself as an associate of Capital Management and announced his $70-per-share offer.