SEC Docket, Excerpts.
SEC Docket; Volume 28 No. 1; June 21; 1983.
SEC Docket; Volume 29 No. 1; Nov 11; 1983.
Nitron Litigation Releases, No. 10147 (September 30, 1983), 10202 (November 17, 1983), and 10259 (January 12, 1984)

Litigation Release No. 10147/September 30, 1983

SECURITIES AND EXCHANGE COMMISSION v. NITRON, INC. AND SAMUEL NISSIM United States District Court for the District of Columbia, Civil Action No. 83-2872

The Securities and Exchange Commission announced the filing on September 29 of a civil injunctive action in the United States District Court for the District of Columbia against Nitron, Inc., a manufacturer of semiconductor devices located in Cupertino, California, and Samuel Nissim, a director of Nitron who served as its president and chairman until 1983. The complaint charges that Nitron and Nissim filed or caused to be filed with the Commission and released or caused to be released to the public, materially false and misleading statements concerning the revenues to be derived by Nitron pursuant to a contract to manufacture video game arcades and cassettes for Astrocade, Inc., a privately-held seller of home video games, concerning the substance and purpose of certain agreements between Nitron and Astrocade, and concerning the financial condition of Nitron and Astrocade. Nitron was also charged with failing to file an annual report and several periodic reports with the Commission during 1982 and 1983.

In connection with these charges, the complaint alleges that on March 18, 1982, Nitron announced the signing of a contract with Astrocade which it expected to generate $32 million in revenues by the end of 1982 and $72 million during 1983, without disclosing that both Nitron and Astrocade would require substantial new financing in order to fund the project and that Astrocade's obligation to pay for the products manufactured by Nitron was contingent upon Astrocade's sale of the products. Nitron also failed, according to the Commission's allegations, to correct its projections when substantial problems developed with the contract due, among other things, to Astrocade's financial difficulties. The complaint further alleges that Nitron made less than $7 million in sales to Astrocade prior to December 31,1982, by which time Astrocade had filed a petition to reorganize under Chapter XI of the Bankruptcy Reform Act.

In filing the action, the Commission seeks permanent injunctions against Nitron and Nissim from violations of the antifraud and reporting provisions of the federal securities laws.

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Litigation Release No. 10202/November 17, 1983

SECURITIES AND EXCHANGE COMMISSION v. NITRON, INC. AND SAMUEL NISSIM United States District Court for the District of Columbia, Civil Action No. 83-2872

The Securities and Exchange Commission announced today the settlement of a civil injunctive action filed on September 29, against Nitron, Inc. a manufacturer of semiconductor devices located in Cupertino, California. (See Litigation Release No. 10147; September 30, 1983). Nitron, without admitting or denying any of the allegations in the complaint, consented to the entry of an order permanently enjoining it from violating certain reporting and anti-fraud provisions of the Securities Exchange Act of 1934.

The complaint charged that Nitron and Samuel Nissim, a director of Nitron who served as Nitron's president and chairman until 1983 filed or caused to be filed with the Commission and released or caused to be released to the public, materially false and misleading statements concerning the revenues to be derived by Nitron pursuant to a contract to manufacture video game arcades and cassettes for Astrocade, Inc., a privately-held seller of home video games, concerning the substance and purpose of certain agreements between Nitron and Astrocade, and concerning the financial condition of Nitron and Astrocade. Nitron was also charged with failing to timely file an annual report and several periodic reports with the Commission during 1982 and 1983.

The action is still pending with respect to defendant Nissim, against whom the Commission seeks a permanent injunction from violations of the antifraud and reporting provisions of the federal securities laws.

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Litigation Release No. 10259/January 12, 1984

SECURITIES AND EXCHANGE COMMISSION v. NITRON, INC. AND SAMUEL NISSIM United States District Court for the District of Columbia, Civil Action No. 83-2872

The Securities and Exchange Commission announced today the settlement of a civil injunctive action filed on September 29 against Samuel Nissim, the former chief executive officer of Nitron, Inc., a manufacturer of semiconductor devices located in Cupertino. California (see Litigation Release No. 10147; September 30, 1983). Nissim. without admitting or denying any of the allegations in the complaint, consented to the entry of an order permanently enjoining him from violating certain reporting and anti-fraud provisions of the Securities Exchange Act of 1934.

The complaint charged that Nitron and Samuel Nissim, a director of Nitron who served as Nitron's president and chairman until 1983, filed or caused to be filed with the Commission and released or caused to be released to the public, materially false and misleading statements concerning the revenues to be derived by Nitron pursuant to a contract to manufacture video game arcades and cassettes for Astrocade, Inc., a privately-held seller of home video games, concerning the substance and purpose of certain agreements between Nitron and Astrocade, and concerning the financial condition of Nitron and Astrocade. Nitron was also charged with failing to timely file an annual report and several periodic reports with the Commission during 1982 and 1983.

The action with respect to Nitron was settled on November 17, 1983 with the entry of an order permanently enjoining it from violations of certain anti-fraud and reporting provisions of the Securities Exchange Act of 1934 (see Litigation Release No. 10202; November 17, 1983).

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