Securities and Exchange Commission v. Adelphia Communications Corporation, John J. Rigas, Timothy J.

The Commission seeks a final judgment ordering the defendants to account for and disgorge all ill-gotten gains including — as to the individuals — all compensation received during the fraud, all property unlawfully taken from Adelphia through undisclosed related-party transactions, and any severance payments related to their resignations from the company. The Commission also seeks civil penalties from each defendant, and permanent injunctions from violating the securities laws. The Commission further seeks an order barring each of the individual defendants from acting as an officer or director of a public company.

Named in the Complaint are:

Adelphia, a Delaware corporation headquartered in Coudersport, Pennsylvania. Adelphia is the sixth largest cable television provider in the United States and, through various subsidiaries, provides cable television and local telephone service to customers in twenty-nine states and Puerto Rico. Shares of Adelphia stock were listed on the National Association of Securities Dealers Automated Quotation System ("NASDAQ") until June 3, 2002, and are now quoted by the Pink Sheets, LLC. Adelphia filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code on June 25, 2002.

John J. Rigas ("J. Rigas"), a 77 year-old resident of Coudersport, Pennsylvania. J. Rigas founded Adelphia in 1952 and was its CEO and Chairman of Adelphia's Board of Directors until May 15, 2002 when he resigned pursuant to a request by the Special Committee created by Adelphia's Board of Directors.

Timothy J. Rigas ("T. Rigas"), a 46 year-old resident of Coudersport, Pennsylvania and a son of J. Rigas. T. Rigas served as a director of Adelphia, as well as Adelphia's CFO, CAO, and Treasurer until May 16, 2002 when he resigned pursuant to a request by the Special Committee. Between December 1992 and June 2001, T. Rigas was chairman of the Audit Committee of Adelphia's Board of Directors.

Michael J. Rigas ("M. Rigas"), a 48 year-old resident of Coudersport, Pennsylvania and a son of J. Rigas. M. Rigas served as a director of Adelphia, as well as Adelphia's Executive Vice President for Operations and Secretary of Adelphia until May 23, 2002 when he resigned pursuant to a request by the Special Committee.

James P. Rigas ("J.P. Rigas"), a 44 year-old resident of Coudersport, Pennsylvania and a son of J. Rigas. J.P. Rigas served as a director of Adelphia, as well as Adelphia's Executive Vice President for Strategic Planning until May 23, 2002 when he resigned pursuant to a request by the Special Committee.