Say it ain’t so!
Beloved former Notre Dame walk-on Daniel E. Ruettiger, the basis for the 1993 film “Rudy,” has settled a lawsuit with the U.S. Securities and Exchange Commission in which the Irish legend will pay $382,866 to federal regulators to settle an alleged stock fraud scheme involving one of his companies.
“The misconduct at the heart of this case is a classic pump-and-dump scheme involving a penny stock called Rudy Nutrition,” reads the SEC lawsuit. “Daniel ‘Rudy’ Ruettiger — the walk-on football player at Notre Dame who was the subject of the 1993 movie ‘Rudy’ — founded Rudy Nutrition to compete with Gatorade in the sports drink market.
“Although Rudy Nutrition produced, marketed and sold a sports drink in modest quantities, it primarily served as a vehicle for a pump-and-dump scheme.”
The company is alleged to have made over $11 million in 2008.
A pump-and-dump scheme is one in which penny stock owners inflate stock prices with false or misleading info to drive up the price and then dump their shares, causing the price to plummet and other investors to be harmed. Though a settlement is not an admission of guilt, it certainly hurts Ruettiger’s reputation as one of college football’s most beloved players ever.
We’re guessing Rudy won’t be mentioning this settlement in his next motivational speech for his current company, Rudy International.