Submitted via IRC for SoyCow5389
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: 4, Informative) by khallow on Monday September 11 2017, @11:45PM (1 child)
It was actually during Bush's first term in 2004.
(Score: 0) by Anonymous Coward on Monday September 11 2017, @11:51PM
Jesus, that long ago? Wow, I'm old...
Anyway, that actually makes the argument stronger that people might face consequences under Trump than they might have under Obama or Clinton. After all, the Bushes were frequently described as the pets of Wall Street.