Intel CEO may face lawsuits, SEC inquiry over sale of stock

William Gayde

TS Addict
Staff member

Intel CEO Brian Krzanich is in hot water after selling $24 million worth of stock back in November. The sale took place after Intel was made aware of the disastrous Spectre and Meltdown security vulnerabilities but before the company publicly announced the details.

Krzanich did have the required 10b5-1 plan in place which allows company executives to legally sell some of their stock but this plan was created at the end of October, five months after Intel became aware of the vulnerability. Another troublesome aspect is that Krzanich sold the maximum number of shares allowable while retaining the minimum required amount under his contract with Intel.

As a result, many immediately voiced concerns of insider trading and the possibility that Krzanich used his access to material non-public information for personal gain. Many investors and attorneys have started discussing the idea of a shareholder suit against Intel. The company's board may also conduct an internal investigation.

The SEC could also be interested in the sale but has declined to say whether or not they are currently investigating him. For their part, Intel has claimed that the stock sale was "unrelated" to the bugs in their CPUs.

The key piece of information in this case is to determine exactly when Krzanich became aware of the vulnerability and whether or not that knowledge affected the sale of his shares. If it turns out that this was indeed insider trading, then Krzanich now has $24 million to get the best lawyer money can buy to protect him.

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noel24

TS Evangelist
The guy probably won't get a single sleepless night about some phony SEC investigation. SEC is a joke after 2007 "subprime" mortage crisis, and those thousands of bankers they have NOT send to jail.
I'm more interested if AMD will use the opportunity to openly advertise their CPUs to be "WINTEL BUG" free. You know, general public doesn't have to be fully aware of the details, just learn that Intel f*cked with them and AMD is safer choice. As long as You don't install Meltdown/Spectre "patches" on Your machine.
 

seeprime

TS Evangelist
What happened was legal, but immensely unethical. When it comes to the elite, ethics are often of no concern. He'll be kicked in the nuts by those "investigating" his actions, but probably get off with only a bruised ego and a round of golf.
 

wiyosaya

TS Evangelist
What happened was legal, but immensely unethical. When it comes to the elite, ethics are often of no concern. He'll be kicked in the nuts by those "investigating" his actions, but probably get off with only a bruised ego and a round of golf.
IF it was insider trading, it was illegal. All insider trading, whether the requisite papers were filed or not, is illegal. At this point, it is unknown whether it was insider trading, but it looks highly suspicious. If there is a smoking gun, something that proves he was informed of the bug before he sold his stock, he will likely at the least face charges - assuming the current justice department is investigating.
 

Uncle Al

TS Evangelist
Can't make me believe a CEO didn't know about the information in advance and certainly can't explain away dumping so much stock prior to a public announcement ... nope, he's a crook, lock him up!
 
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Capaill

TS Evangelist
I was wondering if he would attempt to buy back some stock after Intel's stock price falls as a result of the bugs. Sell high, buy low. But the price hasn't fallen much yet, surprisingly.
 

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