SEC Settles Insider Trading Case against Former Executive at a Coca-Cola Bottling Company

SEC v. Steven Harrold, Case No. CV 12-1959 GW (JCx) (C.D. Cal.).  On February 6, 2013, the SEC announced that it settled insider trading charges against Steven Harrold, a former executive at a Coca-Cola bottling company.  In its complaint filed in March 2012, the SEC alleged that Harrold, who was a Vice President at Coca-Cola Enterprises Inc., bought company stock in his wife’s brokerage account after learning that his company had agreed to acquire the Coca-Cola Company’s bottling operations in Norway and Sweden.  Harrold signed an agreement promising to maintain the confidentiality of any nonpublic information he learned about the deal.  Harrold was also told that he was subject to a blackout period and was prohibited from trading in company stock “until further notice.” However, Harrold bought 15,000 shares in his wife’s brokerage right before the announcement of the transaction.  The stock price rose more than 30 percent when the deal was announced publicly the following day, enabling Harrold to make $86,850 in profit.  Without admitting or denying the allegations, Harrold consented to entry of a final judgment that enjoins him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5(a) and (c) thereunder.  He will also be ordered to pay disgorgement of $86,850, prejudgment interest of $8,954.22, and a civil monetary penalty of $86,850.  In addition, the final judgment bars Harrold from serving as an officer or director of a public company.

This entry was posted in Securities and tagged , , . Bookmark the permalink.