Home > Google Insiders Sell Shares Before Crash; SEC, Lawyers Take Notice
Google Insiders Sell Shares Before Crash; SEC, Lawyers Take Notice
by WireNews+Co - Open-Publishing - Friday 19 October 2012According to an InsiderMonkey report, a number of Google, Inc. (NASDAQ:GOOG) insiders sold off millions in shares just before the crash that was caused by the accidental release of disappointing Q3 financial results for the Internet giant.
In just three days toward the end of September Google chairman Eric Schmidt executed 226 transactions, selling off more than 211,000 shares at prices between $742 and $764 per share. He pocketed $158 million.
Both CEO Larry Page and co-founder Sergey Brin, whose insider sales in the first half of this month (October) totalled $120 million saved them nearly $12 million in combined losses.
According to the report, Brin conducted a "series of transactions Tuesday, October 2, selling 83,334 shares at between $750-$765 a share, with a combined value of at least $62.5 million. Page had been selling shares regularly over several days. "Starting October 8, he sold 20,833 shares at $754-$762 a share for a value of $15.7 million; 20833 shares at $744-$760 October 9, for a value of $15.5 million; 20,833 shares at prices between $741 and $746 per share October 10, for a value of $15.4 million; and 20,835 shares at prices between $752 and $758 October 11, a value of $15.7 million."
On Thursday Google shares were suspended after its quarterly earnings report was released several hours earlier than planned and the company’s stock price plummeted 9 per cent in just a few minutes in the middle of the trading day.
It’s very likely that other insiders were also able to sell shares in full knowledge of the poor results that the company had hoped to make public after the market had closed Thursday. Hopefully the U.S. Security and Echange Commission will investigate whether or not these insiders acted with the knowledge that they sought to delay other shareholders from having until after the market closed.
Isn’t that what they jailed Martha Stewart for?