Thousands of stock deals go down without a hitch every day all over the country, including in the Miami area. However, not all deals are completely ethical and some are even totally illegal. These deals can sometimes lead to shareholder disputes among company members and owners.
Two brothers from Brazil have agreed to a settlement involving an alleged insider trading deal in relations to H.J. Heinz. According to court documents, the two brothers neither denied nor admitted to the allegations as part of the settlement, which is reported to be close to $5 million. Attorneys for the brothers have not commented on the settlement to this point, while it is still subject to approval by a federal court.
According to reports, one of the brothers bought the call options one day before a surprise announcement that Heinz was being purchased. According to investigators, the brother allegedly made the order after he learned about non-public information regarding the company from his brother. The man also allegedly placed the order even though the broker informed him that Heinz was rated as a “sell”. The acquisition of the company was announced the following day, which caused the call options to jump to more than $1.8 million in value, an increase of 1,700%.
If a person in Miami finds him or herself in this kind of dispute, or any type of business litigation, then he or she should probably speak with an experienced and professional commercial litigation lawyer. A knowledgeable lawyer understands how to handle these cases and how to help a person win a favorable outcome.
Source: USA Today, “Brothers fined $5M in Heinz insider-trading case,” Kevin McCoy, Oct. 10, 2013.