Investors Demand Top Sinclair Execs Disgorge Proceeds from Insider Trading

[BlueNomad]

UPDATE ---ahh don't you love the the almighty dollar, the power of boycott and ad threats 9depite what they say...)

Investors Demand Top Sinclair Execs Disgorge Proceeds from Insider Trading That Occurred Months Before Stock Plummeted;


WASHINGTON, Oct. 19 /U.S. Newswire/ -- Three members of the Smith family that controls Sinclair Broadcasting, the 62-station firm based in Baltimore that is embroiled in a controversy over its open advocacy of President Bush's re-election, appear to have engaged in insider trading of the company's stock, reaping millions of dollars before the stock's value collapsed on surprise revenue shortfalls.

William S. Lerach, famed California-based securities attorney and partner in Lerach Coughlin Stoia Geller Rudman Robbins LLP, told a news conference today that self-dealing by officers of Sinclair at the expense of shareholders must be stopped and the profits taken by Sinclair Vice Presidents Frederick Smith, J. Duncan Smith and director Robert E. Smith and that profits taken from insider trading must be disgorged.

The three Smiths have sold more than $18.5 million worth of Sinclair stock, most of it near the stock's 52-week high of nearly $15.50 per share. The stock has fallen steadily since that point, closing today below $6.50 per share, representing a nearly $600 million loss in market cap. Yesterday, as news stories swirled around Sinclair's involvement in the presidential election campaign, shares fell by an additional 8 percent to a new 52 week low. (See chart on the company's share values and the sales, attached.)

Lerach told the news conference: "There is insider trading at a time when the company is experiencing troubles. The board and officers should be focusing on creating shareholder value -- not pressing a controversial personal political agenda at shareholders' expense."

.....

Lerach said the political controversy, while not the catalyst for the lawsuit, certainly affects share value. "The decision by senior executives of Sinclair to pursue a personal political agenda that harms Sinclair's business is directly against the interest of company stockholders," he said.

<http://releases.usnewswire.com/GetRelease.asp?id=38448>

[aquart]

1. Tee hee.

They need George to stay out of jail.

What was their coverage of Martha like, btw?

[Moderator]

2. DUplicate

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=915872


To avoid duplicates:
Read the Latest Breaking News forum first before posting. Look for high count threads for obvious stories that have a lot of interest and that have been posted previously.
Do a search of a just a few keywords. Running just the title sometimes does not bring up results.
If you don't have the search option because you don't donate, consider donating, or look on the right column of the latest page. Scan the column for posts made in the last day.