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SEC investigating suspicious trading activity of GT Advanced shares
The fallout from GT Advanced Technologies' (GTAT) failed partnership with Apple continues to pile up. The SEC is now actively investigating stock sales made by GTAT executives in the weeks and months leading up to the unveiling of the iPhone 6.
The partnership between Apple and GTAT reportedly centered on manufacturing sapphire displays for the iPhone 6. Manufacturing and quality control problems, however, caused GTAT to miss a number of operational and technical benchmarks imposed by Apple. Notably, recently filed court documents have indicated that these problems may have started all the way back in February.
Curiously, GTAT COO Daniel Squiller sold 33% of his GTAT shares in the months preceding the iPhone 6 unveiling. Meanwhile, GTAT CEO Thomas Guiterrez sold $160,000 worth of GTAT shares just one day before the iPhone 6 unveiling.
With shares of GTAT dropping by over 90% in the wake of the company filing for bankruptcy, it's only natural that questions of impropriety have been raised.
A recently filed Form 8-K from GT Advanced reads in part:
On October 15, 2014, the Securities and Exchange Commission (the "SEC") sent a letter to the Company noting that it was conducting an inquiry into matters involving the Company (the "SEC Inquiry"). The SEC is seeking certain information regarding trading activity in the Company's securities, as well as the Company's sapphire business and securities offering going back to January 1, 2013, and requesting the preservation and production of documents. The Company is fully cooperating with the SEC.
