| Title | Outrage Builds after Equifax Executives Banked $2 Million Following Data Breach | |
| Date | Monday September 11 2017, @07:27PM | |
| Author | janrinok | |
| Topic | ||
| 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.
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