Infospace founder appeals ruling

NEW YORK, Aug. 23 (UPI) -- Infospace founder Naveen Jain has been ordered to pay $247.1 million to a Seattle-based Internet firm, a report said Saturday.

The civil lawsuit, brought by shareholder Thomas Dreiling, centers on violations of rules against "short swing trading," which prohibit insiders from trading shares within six months of their purchase or sale, CBSMarketWatch reported.

Jain, in a statement, said the ruling was "unjust and legally incorrect." Jain and his wife, Anu, said they would appeal the ruling.

U.S. District Court Judge Marsha Pechman in May ruled that Jain had illegally bought and sold millions of shares of Infospace stock between December 1998 and May 1999, when he served as CEO of the company. Jain was ousted by the firm's board in December.

At the height of the Internet boom in March 2000, Infospace shares were trading at more than $1,300 a share. The stock closed at $14.99 Friday on Nasdaq, down 31 cents.