Kluger also supplied tips before announcements in September 2007 that Omniture Inc. would acquire Visual Sciences Inc.; in March 2008 that Ansys Inc. would acquire Ansoft Corp.; in April 2009 that Oracle Corp. would buy Sun; in September 2009 that Adobe Systems Inc. would acquire Omniture Inc.; in November 2009 that Hewlett-Packard Co. would buy 3Com; in August 2009 that Intel Corp. would acquire McAfee Inc.; and in February 2011 that CSR Plc would merge with Zoran Corp., according to the FBI.
The illicit profits in those 11 transactions ranged from $199,248 in the Hewlett-Packard-3Com deal to $11.4 million in the Oracle-Sun deal, according to the FBI complaint.
IBM, AOL
The FBI also charges Kluger gave inside tips on Johnson & Johnson's 1994 acquisition of Neutrogena Corp.; International Business Machine Corp.'s acquisition in 1995 of Lotus Development Corp.; IBM's purchase in 1996 of Tivoli Systems Inc.; Unilever's 1996 acquisition of Helene Curtis Industries Inc.; and America Online Inc.'s acquisition in 1999 of MovieFone Inc.
"We were shocked to learn of the conduct the government has alleged a former employee committed against us and two other prominent law firms," said Courtney Chiang Dorman, a senior vice president at Wilson Sonsini. "We have provided our full support to the federal investigation and will continue to do so. In light of the pending actions by the U.S. Attorney's Office and the SEC, we are not in a position to comment further."
Cravath spokeswoman Robin Shanzer didn't return a phone and e-mail messages seeking comment yesterday.
'Strict Policies'
"We have strict policies that protect our clients' confidential information, which we monitor closely," Skadden spokesman Brendan Intindola said in a statement. "It would be deeply disappointing if these policies were not followed in this instance. We are cooperating fully with the government in this matter."
By March 18, Bauer was worried.
"I can't sleep," Bauer said during a call that day. "I am waiting for the FBI to ride into my apartment. And I am on edge all night thinking that they're coming."