Insider Trading At Menu Foods - Sold Stock Before Doing the Pet Food Recall

@speakeasy (4215)
United States
May 9, 2007 9:19pm CST
The Chief Financial Officer at Menu Foods sold half of his stock in the company the SAME day the company started testing the food because of complaints on previous days from customers. He may not have known what was wrong at the time; but he was aware there was a possible problem and he dumped his stock on the market. This is insider trading and it is what got Martha Stewart in so much trouble. I hope he also gets in trouble for this. Here is the link - http://muttcats.com/blog/2007/04/10/menu-foods-cfo-sold-stock-just-before-recall/
1 person likes this
1 response
• United States
10 May 07
Speakeasy, I could not agree with you more. In the late 1980's, I and 8 other people sued a certain NYSE listed company for stock fraud concerning monkey business similar to this. (We won, BTW) The amount of money this costs investors and the undermining of our securities' markets by this kind of behavior is criminal. I do not mean in figurative sense. I mean it really is criminal. If it was up to me, this bozo would go to jail. It is not harmless what these cheaters do to cause the public to not trust our stock markets. Modern capitalism along with the wealth and convenience it brings to us all, is dependent on faith in the system. When criminals get away with insider trading they weaken the foundation of our way of life and standard of living. I want to see hard time in jail for all persons guilty of stock fraud and insider trading. This guy does not want me on his jury.
@speakeasy (4215)
• United States
10 May 07
I agree. People who do this just "assume" that the people they unload their stocks on can absorb the loss without any problems. They don't stop to think that the shares may have been bought by someone for their retirement fund, college fund, or because they NEED the income from the companies dividends to actually live on. They also don't care that they have information the other person doesn't and CAN"T get hold of; so the "playing field" is unequal.