Another NDA?
posted on
Apr 22, 2008 09:00AM
I hate to be a downer in the midst of such great new developments, but it sounds like another confidential settlement. Maybe the terms are just not publicly available yet. Either way, I do not understand how the BOD can be permitted to trade based on their knowledge that is not known to public without violating insider trading restrictions. Not only in regards to this signing, but more importantly the terms of the J2.5 settlement, particularly given the theory that there is much more to come which I, and others, firmly believe. Note:
Cal Corp Code § 25402 (2008)
§ 25402. Purchase or sale by person connected with issuer with access to information not available to public
It is unlawful for an issuer or any person who is an officer, director or controlling person of an issuer or any other person whose relationship to the issuer gives him access, directly or indirectly, to material information about the issuer not generally available to the public, to purchase or sell any security of the issuer in this state at a time when he knows material information about the issuer gained from such relationship which would significantly affect the market price of that security and which is not generally available to the public, and which he knows is not intended to be so available, unless he has reason to believe that the person selling to or buying from him is also in possession of the information.
"issuer" is the corporation who issued the shares. I am happy the BOD is buying and not selling, but there is a major problem with lack of information flowing between company and shareholder, and BOD continuing to trade. This will continue to be a problem with these confidential settlements. Obviously the bigger problem will come when the BOD sells on information that we do not know about. This just does not sit right with me and IMO needs further attention. -Still long and strong, just want to protect my investment.