DALLAS (CN) – The communications director of a software company tipped her husband to the failure of an anticipated merger, and he dumped 40,000 shares of the target company, avoiding $163,000 in losses, the SEC says in an inside-trading complaint.
Karen Walker, the former PR director of JDA Software Group, tipped off her husband, Jeff Soison, her husband, the former president of another publicly traded company, the SEC says in its federal complaint.
Walker learned on Nov. 4, 2008 that JDA would not merge with i2 Technologies, and about 35 minutes after she got the news from a supervisor, her husband sold all of his 40,006 shares of i2 for about $14.50 each, the SEC says.
Before the NASDAQ opened the next morning, JDA issued a press release announcing it had requested that i2 “adjourn” its shareholders’ meeting and enter into negotiations to reduce the merger consideration; Walker was listed as a contact on the press release. i2 then opened at $10.55 per share and closed at $10.42 that day, so Walker avoided a loss of $163,224, the SEC says.
Both defendants agree to permanent injunctions, disgorgement and penalties for civil violations.