Latest in Aapl

Image credit:

Citigroup fined $30 million for leaking iPhone research

Steve Sande, @stevensande
October 4, 2013
Share
Tweet
Share

Sponsored Links

Citigroup is learning the hard way that leaking unpublished research on iPhone production numbers to institutional investors ahead of other investors is wrong. The company has been fined US$30 million for sending that data to SAC Capital, T. Rowe Price, Citadel and GLC Partners ahead of official publication that would have been available to all investors.

All of the investment firms except GLC Partners used information gathered by Citigroup analyst Kevin Chang to sell off AAPL shares before the news hit the rest of the market. The day Chang's research was made public on December 14, 2012, Apple's share price fell 5.2 percent so the three institutional investors who acted on his research early saved themselves millions.

The fine was levied in a consent order from the Secretary of the Commonwealth of Massachusetts, William Galvin, who noted, "It seems that the concept that investors are to be presented with a level playing field when it comes to the product of research analysts is a lesson that must be learned over and over again. But it's important that it should be taught as often as necessary."

Citigroup was also fined last year when another analyst disclosed confidential information before Facebook's IPO. Chang has been fired from the company.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
Tweet
Share

Popular on Engadget

HAL 9000 replica's crowdfunding project goes bust

HAL 9000 replica's crowdfunding project goes bust

View
iPhone 12 teardown reveals how 5G has changed things

iPhone 12 teardown reveals how 5G has changed things

View
What we bought: Our favorite USB-C chargers

What we bought: Our favorite USB-C chargers

View
A massive spam attack is ruining public 'Among Us' games

A massive spam attack is ruining public 'Among Us' games

View
Get ready to raid 'Ghost of Tsushima' on October 30th

Get ready to raid 'Ghost of Tsushima' on October 30th

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr