"How to Prevent Even the Appearance of Insider Trading" by Michael Mann

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December 22, 2017

In 2017, the public was stunned by the news that multiple Equifax senior executives, including the company’s Chief Financial Officer, had sold thousands of company shares ahead of the company’s disclosure that a massive cybersecurity breach had compromised the personal identifying information of more than 140 million consumers. Although Equifax and a Special Committee of independent directors have concluded that the trades complied with Equifax’s insider trading policy and did not violate insider trading laws, Equifax has been pilloried by the news media and the public, which were quick to assume that the executives had engaged in insider trading and continue to view Equifax as having breached the public’s trust.

In this article published in Compliance Week, RK&O attorney Michael Mann addresses lessons learned from the Equifax incident and provides suggestions for companies seeking to re-evaluate their insider trading policies in light of evolving legal and reputational risks. 

Click here to read "How to Prevent Even the Appearance of Insider Trading"