Stories
Slash Boxes
Comments

SoylentNews is people

posted by janrinok on Monday September 11 2017, @07:27PM   Printer-friendly
from the malice-or-coincidence? dept.

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.

Source: https://www.washingtonpost.com/news/business/wp/2017/09/08/outrage-builds-after-equifax-executives-banked-2-million-in-stock-sales-following-data-breach/


Original Submission

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 0) by Anonymous Coward on Tuesday September 12 2017, @04:12AM

    by Anonymous Coward on Tuesday September 12 2017, @04:12AM (#566538)

    It's strictly business. There is no reason to look at it any other way

    I respectively disagree. We should look at the whole system of buying Government as treason and throw everyone involved in jail.

    I'll be over in the corner holding my breath and petting a unicorn while I wait for that to happen. Either that or having more scotch.