Acer pair charged with insider trading for '$72k pre-results stock dump'
Cashed in right before Q3 slump, alleges rap sheet
Two senior Acer staffers have been charged with insider trading – after allegedly offloading shares worth $72,300 just before the PC giant announced fresh financial losses.
Former company mouthpiece Henry Wang and investor relations division senior manager Jiong Yuan Chen were charged in Taiwan late last week along with five others. They were among a group of ten quizzed by cops in March in an alleged insider-dealing probe.
An Acer spokesman told The Channel today: "Acer respects the judicial investigation procedures and is not in a position to comment on the individual actions of Henry Wang and Jiong Yuan Chen."
Taiwanese prosecutors told reporters the pair allegedly made $72,300 (£42,800) when they cashed in shares just before the Taiwan-based PC maker reported losses of NT$13.13bn ($442.2m, £258m) in the third quarter of 2013. The losses were due to a series of one-off charges.
Following the public filing of the quarterly financials, Acer's market cap fell 6.8 per cent.
Charges against three other people were dropped on insufficient evidence grounds; these individuals did not work for Acer.
Last week Acer reported Q1 sales of NT$76.72 (£1.5bn), down 16 per cent year-on-year, with a profit of NT$1m (£19,600). Chairman Stan Shih returned to the business last autumn with a turnaround in mind.
The business is now back in the black and Shih is due to step down next month, but is one of the nominees to be re-elected onto the board. ®