Litigation Release No. 22458 August 24, 2012

SEC v. Eric Martin, Defendant and Robin Martin, Relief Defendant
Civil Action No. 1:12-CV-02922-AT

SEC Charges Eric Martin, former Vice President of Investor Relations of Carter's Inc. with Insider Trading

On August 23, 2012, the Securities and Exchange Commission filed a civil injunctive action against Eric Martin, a 42 year old resident of Roswell, Georgia. The Commission alleges that Martin, who served from 2003 through March 2009 as the Director and, later, Vice President of Investor Relations for Carter's Inc., repeatedly traded Carter's shares during blackout periods while in possession of material, nonpublic information regarding the company's financial results. According to the complaint, Martin obtained Carter's preliminary financial results while preparing Carter's senior management for Carter's quarterly earnings calls, and then bought or sold Carter's stock depending on whether the preliminary information here received was positive or negative. As the result of his illegal trading, Martin realized profits and avoided losses in excess of $170,000.

The Commission's complaint, filed in the United States District Court for the Northern District of Georgia, charges Martin with violating the antifraud provisions of the federal securities laws during at least 8 quarters between January 2007 and April 2009 in advance of the company's quarterly earnings releases. The Commission seeks a permanent injunction, disgorgement with prejudgment interest and civil monetary penalties Act against Defendant Martin and seeks disgorgement with prejudgment interest from his wife, Relief Defendant Robin Martin, for trading Martin did through her accounts.