3Com Corporation (COMS:NASDAQ)

The Securities and Exchange Commission announced insider trading charges against nine defendants in a case involving serial insider trading by a ring of Wall Street traders and hedge funds who made over $20 million trading ahead of corporate acquisition announcements using inside information tipped by an attorney at the international law firm of Ropes & Gray LLP, in exchange for kickbacks. The SEC alleges that Arthur J. Cutillo, an attorney in the New York office of Ropes & Gray, misappropriated from his law firm material, nonpublic information concerning at least four corporate acquisitions or bids involving Ropes & Gray clients -- the 2007 acquisitions of Alliance Data Systems Corporation., Avaya Inc., 3Com Corporation and Axcan Pharma Inc. The complaint alleges that Cutillo, through his friend and fellow attorney Jason Goldfarb, tipped inside information concerning these acquisitions to Zvi Goffer, a proprietary trader at the broker-dealer Schottenfeld Group, LLC. The complaint further alleges that Zvi traded on this information for Schottenfeld, and had numerous downstream tippees who also traded on the information, including other professional traders and portfolio managers at two hedge fund advisers. The commission's complaint names the following defendants and includes the allegations set forth below. Arthur J. Cutillo, a resident of Ridgewood, New Jersey, is an attorney in the New York office of the international law firm of Ropes & Gray. Cutillo misappropriated from his law firm material, nonpublic information concerning at least four corporate acquisitions involving Ropes & Gray clients -- the 2007 acquisition announcements of ADS, Avaya, 3Com, and Axcan. Cutillo illegally tipped that information, through his friend and fellow attorney Jason Goldfarb, to Zvi Goffer, a proprietary trader Schottenfeld, in exchange for kickbacks. Jason C. Goldfarb, a resident of New York, New York, is an attorney in private practice in New York. Goldfarb illegally tipped Zvi Goffer material, nonpublic information concerning upcoming corporate acquisitions that Cutillo misappropriated from Ropes & Gray, in exchange for kickbacks. Zvi Goffer, a resident of New York, New York, is currently employed at Echotrade LLC, registered broker-dealer, and is also a trader at Incremental Capital, LLC. During the relevant time period, Zvi Goffer was a registered representative and proprietary trader at Schottenfeld, a registered broker-dealer. Zvi Goffer illegally traded on and/or tipped material, nonpublic information concerning the proposed acquisitions of Avaya, 3Com, and Axcan. Craig C. Drimal, a resident of Weston, Connecticut. Drimal is a trader who, during part of the relevant time period, worked out of the offices of Galleon Management, LP. Currently, Drimal is a registered representative at Echotrade and is also a trader at Incremental Capital. Drimal illegally traded on and/or tipped material, nonpublic information concerning the proposed acquisitions of Avaya, 3Com, and Axcan. Schottenfeld Group, LLC is a registered broker-dealer located in New York, New York. Schottenfeld illegally traded on material, nonpublic information concerning the proposed acquisitions of Avaya, 3Com, and Axcan. Gautham Shankar is a resident of New Canaan, Connecticut. During the relevant time period, Shankar was a registered representative and proprietary trader at Schottenfeld. Shankar illegally traded on and tipped material, nonpublic information concerning the proposed acquisitions of Avaya, 3Com, and Axcan. David Plate, a resident of New York, New York, is a registered representative at G-2 Trading LLC, a registered broker-dealer. During the relevant time period, Plate was a registered representative and proprietary trader at Schottenfeld. Plate illegally traded on material, nonpublic information concerning the proposed acquisitions of Avaya, 3Com, and Axcan. Emanuel Goffer, a resident of New York, New York, is employed at Echotrade and is also a trader at Incremental Capital. During the relevant time period, Emanuel Goffer was a registered representative and proprietary trader at Spectrum Trading LLC, a registered broker-dealer. Emanuel Goffer illegally traded on material, nonpublic information concerning the proposed acquisitions of Avaya and 3Com. Michael A. Kimelman, a resident of Larchmont, New York, is a registered representative at Echotrade and also is a trader at Incremental Capital. During the relevant time period, Kimelman was a trader at Lighthouse Financial Group LLC, an investment bank and registered broker-dealer. Kimelman illegally traded on material, nonpublic information concerning the proposed acquisition of 3Com.

3Com Corporation announced that DISIT selected 3Com and its H3C enterprise networking solutions as part of the DSL rollout in its Post Offices. DISIT will deploy H3C(R) MSR 20-13 and 20-15 multi-service routers in 7000 of La Poste's post offices. DISIT's objective was to improve the security as well as the performance and communications of the wireless network. 3Com therefore proposed a high-performance routing solution that was capable of integrating new functionality for La Poste in a very short time.

3Com Corporation announced that Infraero, the government-run airport administration for Brazil, selected 3Com and its H3C enterprise networking solutions to provide the network infrastructure for its network upgrade project for 11 of the main airports in the country. The aim of the initiative is to increase the performance and security of the airport's wired and wireless networks to support the increasing demand of passengers and employees. Infraero estimates that by using 3Com's H3C enterprise networking devices it will achieve a 100-fold increase of performance on data, voice and video applications used for flight information systems, air traffic control, surveillance and IP telephony systems. More than 800 networks points distributed between 11 airports are planned for the first phase of the project. In addition to the TippingPoint (R) IPS solution deployed by Infraero, the administration will leverage the following solutions:--3Com(R) Switch 8800 also called H3C(R) S9500 10-igabit Ethernet core switch series for high availability--3Com Switch 5500G also called, H3C S5600 Gigabit stackable switches with 10-Gigabit uplinks--3Com wireless access points--3Com Site Survey and Installation Services. The initial phase of the project includes upgrades to a 10 Gigabit Ethernet backbone to replace an ATM network for Guarulhos (SP), Galeao (RJ), and Salvador (BA) airports. The technological upgrades in these three airports complements projects already concluded on airports with large network demands, such as Congonhas (SP), Santos Dumont (RJ), and Viracopos (SP).