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U.S. Charges Two in $27 Million Insider-Trading Scheme

A former Foundry Networks Inc. executive was charged in what prosecutors called a $27 million insider-trading scheme with tipping a California hedge fund analyst about the company’s acquisition by Brocade Communications Systems Inc.

David Riley, 47, the former chief information officer for Foundry Networks, and Matthew Teeple, 41, an analyst for an unidentified San Francisco-based hedge fund, were charged yesterday in a felony complaint filed in federal court in Manhattan, prosecutors said. The U.S. Securities and Exchange Commission also sued the two, as well as third man, John V. Johnson.