Seven charged in insider trading involving Tempur-Pedic, Axciom stock
SEC says fund official used non-public information
Furniture Today Staff -- Furniture Today, November 2, 2009
WASHINGTON — U.S. securities regulators have charged a former pension fund official and six of his relatives and friends with insider trading of stock in Axciom Corp. and bedding major Tempur-Pedic International, Reuters is reporting.
Regulators said that Chen Tang, the former chief financial officer of a private equity fund, and his friends and relatives made more than $8 million using non-public information about the companies.
With Tempur-Pedic, Tang found out about a surprise announcement that the company would fail to meet its earnings forecast, the Securities and Exchange Commission alleged. He and three of his friends shorted the stock and made money when the share price fell, the SEC said.
Click here to read the Reuters story.
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