The U.S. Securities and Exchange Commission has settled an insider trading case involving Nortel Networks.

On July 2, the commission filed an insider trading case alleging that George Brandt, husband of a San Francisco-based public relations executive obtained nonpublic information about the acquisition of Clarify Inc. by Nortel Networks.

The commission alleged that Brandt used the information he had gotten from his wife to buy Clarify stock before the information became public.

In the complaint, filed in the U.S. District Court for the Northern District of California, the commission alleged that Brandt’s wife was an executive of a San Francisco public relations agency coordinating media contacts in preparation for the acquisition announcement. She told Brandt about the acquisition in confidence and Brandt used the confidential information to buy Clarify stock.

Without admitting or denying the commission’s allegations, Brandt consented to a permanent injunction prohibiting future violations, and he also agreed to pay a total of US$29,419.41, including US$14,246.26 in disgorgement of profits and a civil penalty of $14,246.26.