SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C.

     LITIGATION Release No. 15549 / November 4, 1997

     SECURITIES AND EXCHANGE COMMISSION v. ANDREW S. LANE, JACK LANE, JACK O.
     SCHER, DEBORAH S. GAMES, CRAIG L. SAMPSON, BRUCE SAMPSON, and TRACY ANN
     STODDART, 97 Civ. 8144.       

          The Securities and Exchange Commission ("Commission") today filed an
     insider trading complaint against Andrew S. Lane ("Lane"), 34, and Jack
     Lane, 69, of Stamford, Connecticut; Jack Scher, 70, of Faber, Virginia;
     Deborah S. Games, 29, of Greenwich, Connecticut; Craig L. Sampson, 43, of
     White Plains, New York; Bruce Sampson, 70, of Trumbull, Connecticut; and
     Tracy Ann Stoddart, 36, of Santa Fe, New Mexico.  The Commission's
     Complaint charges the defendants with insider trading and/or tipping others
     to trade in the securities of The MEDSTAT Group, Inc. ("Medstat") in
     advance of a tender offer for Medstat by The Thomson Corporation
     ("Thomson").  Simultaneous with the filing of the Complaint, Andrew and
     Jack Lane, Scher, Games and Craig and Bruce Sampson consented to the entry
     of permanent injunctions against them and agreed to pay a total of
     $888,665.67 in disgorgement of illegal profits, prejudgment interest and
     penalties, without admitting or denying the allegations in the Commission's
     complaint.  

          According to the Commission's Complaint, by at least August 1, 1994,
     Lane, who was then the Director of Finance at Thomson Business Information,
     a Thomson operating group, learned of Thomson's plans to acquire Medstat. 
     The Complaint alleges that from August 1 through November 14 Lane bought a
     total of 3,000 shares of Medstat in a series of small purchases.  The
     Complaint also alleges that Lane tipped his father Jack Lane, his family
     friend Scher, his then-roommate Games, his former girlfriend Stoddart, and
     his friend Craig Sampson concerning the planned tender offer.  The
     Complaint further alleges that Craig Sampson tipped his father Bruce
     Sampson.

          As to Scher, the Complaint alleges that Lane communicated with Scher
     approximately 12 times as the Medstat-Thomson deal unfolded, tipped him
     concerning the planned tender offer and that at propitious times in the
     course of the negotiations Scher bought Medstat stock for himself and
     recommended it to others.  Specifically, the Complaint alleges that Scher
     bought a total of 6,500 shares of Medstat for himself in three
     transactions, first in August, and again on two occasions in October when
     the deal negotiations intensified after a brief hiatus.  The Complaint
     further alleges that while in possession of material nonpublic information
     he obtained from Lane, Scher recommended Medstat as an investment to a
     total of 21 family members, friends and colleagues with sufficient fervor
     to induce each of them to purchase Medstat, and that four of Scher's
     friends and colleagues passed his Medstat recommendation to others who also
     bought Medstat.  In all, the Complaint alleges that 37 persons trading

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     directly or indirectly on Scher's recommendation bought a total of
     approximately 34,000 shares of Medstat.  

          As to Lane's other tippees the Complaint alleges that: Jack Lane
     bought 500 shares of Medstat; that Games bought a total of 3,250 shares of
     Medstat, 1,650 of which she sold at a profit before the tender offer
     announcement; that Stoddart bought a total of 1906 shares of Medstat for
     herself 700 of which she sold before the tender offer announcement, and
     that she recommended Medstat to a family member who bought 235 shares; and
     that Craig Sampson passed the material nonpublic information he received
     from Lane to his father Bruce Sampson, who bought 1,500 shares of Medstat. 


          The Complaint alleges that as a result of their insider trading and
     tipping, each of the defendants violated Sections 10(b) and 14(e) of the
     Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 14e-3
     thereunder.  As relief it seeks a permanent injunction against future
     violations of these provisions, and an order requiring defendants to
     disgorge their illegal trading profits plus prejudgment interest and to pay
     civil penalties.

          Simultaneously with the filing of the Complaint, five of the six
     defendants consented to the entry of final judgments against them without
     admitting or denying the allegations in the Complaint.  Each of the
     settling defendants consented to the entry of the requested injunction. 
     Scher agreed to disgorge all of his own trading profits and those of the 37
     persons whose trades resulted directly or indirectly from his
     recommendations, together with prejudgment interest for a total of
     $511,334.99.  Scher also agreed to pay a penalty of $282,924, equal to the
     his own profits and those of the 21 persons to whom he directly recommended
     Medstat.  Lane agreed to disgorge $71,712.56, representing his own profits
     and other trading profits, not otherwise disgorged, that he is responsible
     for, with all but $50,000 waived in light of his demonstrated inability to
     pay based on his sworn representations in his statement of financial
     condition.  Jack Lane agreed to disgorge his profits together with
     prejudgment interest in the total amount of $7,664.86, and to pay a civil
     penalty equal to his profits of $6,000.82.  Bruce Sampson agreed to
     disgorge his profits together with prejudgment interest in the amount of
     $17,242.13 and to pay a civil penalty equal to his profits of $13,498.87. 
     Games agreed to disgorge her profits of $17,814.42, which amount is waived
     in light of her demonstrated inability to pay based on her sworn
     representations in her statement of financial condition.  

          This is the Commission's second enforcement action alleging insider
     trading in advance of the November 16, 1994 announcement of a tender offer
     for Medstat.  See SEC v. William J. Rauwerdink, (S.D.N.Y.), Lit. Rel. 14731
     (November 27, 1995).  

          The Commission's investigation in this matter is continuing.




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