The U.S. Securities and Exchange Commission (SEC) has charged Robert Scott Murray and his private company Trillium Capital LLC, controlled by Murray, with allegedly manipulating the stock price of Getty Images Holdings Inc. through fraudulent means by announcing a scheme for Trillium to purportedly acquire Getty Images.

Murray, from Mashpee, Massachusetts, is a former CEO and CFO of several publicly traded companies.

According to the lawsuit filed by the SEC in the federal district court of Massachusetts, Murray and Trillium began issuing press releases in early April 2023 after establishing positions in Getty Images stock and options, urging Getty Images to sell the company or to add Murray to its board of directors.

The lawsuit alleges that Murray designed these press releases in part to boost Getty Images' stock price, but they did not have a significant impact on Getty Images' stock price. Consequently, Murray allegedly devised what he called a "new plan" to inflate Getty Images' stock price by announcing a bogus acquisition offer.

On the morning of April 24, 2023, Murray and Trillium Capital issued a press release announcing Trillium's proposal to acquire all outstanding shares of Getty Images at a price of $10 per share, nearly double the previous day's closing price, causing a sharp increase in the company's stock price.

The SEC's lawsuit alleges that the acquisition announcement was false and misleading because Murray and Trillium had no genuine intention to acquire Getty Images, nor did they make genuine efforts to raise the funds for the proposed transaction. Although Murray and Trillium pledged in the press release to hold their own shares, Murray began liquidating his Getty Images stock within minutes of the market opening on April 24, before Getty had even responded to his announced offer.

The SEC's lawsuit charges Murray and Trillium with violating anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. To settle the SEC's charges, Murray and Trillium have agreed to a judgment permanently enjoining them from future violations of these provisions of the federal securities laws, prohibiting them from engaging in certain securities-related activities, and barring Murray from serving as an officer or director of a public company.

The defendants also agreed to have the court determine whether they are required to pay disgorgement, prejudgment interest, and civil penalties, and if so, the amount to be paid.

In a parallel action, the U.S. Attorney's Office for the District of Massachusetts today announced criminal charges against Murray.