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The sale of nearly $2 million in corporate stock by high-level Equifax executives shortly after the company learned of a major data breach has sparked public outrage that could turn into another hurdle for the credit rating agency.
The sales all occurred before the company publicly reported the breach, a disclosure that quickly sent its stock tumbling. The timing of the sales could attract federal scrutiny, legal experts say, though proving insider trading would be difficult. A company spokeswoman said the executives did not know about the breach when they sold their shares.
“It certainly would be exactly the type of trading pattern before a high-profile event that the [Securities and Exchange Commission] would investigate,” said Brandon L. Garrett, a professor at the University of Virginia School of Law. “Even if they do not bring charges it is the type of conduct that a company should not tolerate in its executives. It sends a terrible message to the public and to customers.”
The SEC declined to comment on whether it was investigating the matter.
(Score: 1, Interesting) by Anonymous Coward on Monday September 11 2017, @08:12PM (1 child)
I mean a public national shit list. a hall of shame.
(Score: 3, Insightful) by Anonymous Coward on Tuesday September 12 2017, @12:42AM
I think that would only work for people who, you know, actually can feel shame. Somehow, I doubt this applies to these Executives at Equifax. Just sayin'.