Nine executives from the Taiwanese company Inventec could face a prison sentence for failing to reveal Apple Inc’s plans to reduce iPod orders to the company over a set period of time. They have been accused of insider stock trading, amounting to almost $22.4million (USD) worth of stock being sold on the Taiwanese stock exchange.
They are reported to have known since January 19th 2006 that they would have had to cut iPod output by 49% in February as Apple moved orders to China. This gave them plenty of time to sell the stock.
They failed to reveal this massive drop in iPod orders to their investors and even planned to lay off workers at an iPod factory before they let investors know of their woes.
The company stock price rose sharply up to a high on February 3rd. By March stock prices and revenue had begun to crash. The company still has not recovered.
If they are convicted the Chairman and President could face between 6 to 7 and a half years in prison and fines of up to NT$60million.
|
Similar / Related Articles:
|
