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Thread: Three Equifax Managers Sold Stock Before Cyber Hack Revealed

  1. #1
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    Three Equifax Managers Sold Stock Before Cyber Hack Revealed

    Three Equifax Inc. senior executives sold shares worth almost $1.8 million in the days after the company discovered a security breach that may have compromised information on about 143 million U.S. consumers.

    The trio had not yet been informed of the incident, the company said late Thursday.


    The credit-reporting service said earlier in a statement that it discovered the intrusion on July 29. Regulatory filings show that on Aug. 1, Chief Financial Officer John Gamble sold shares worth $946,374 and Joseph Loughran, president of U.S. information solutions, exercised options to dispose of stock worth $584,099. Rodolfo Ploder, president of workforce solutions, sold $250,458 of stock on Aug. 2. None of the filings lists the transactions as being part of 10b5-1 scheduled trading plans.

    The three “sold a small percentage of their Equifax shares,” Ines Gutzmer, a spokeswoman for the Atlanta-based company, said in an emailed statement. They “had no knowledge that an intrusion had occurred at the time.”

    Gamble sold more than 13 percent of his stake in Equifax. Loughran sold 9 percent of his holdings and Ploder disposed of 4 percent.
    Equifax said in its statement that intruders accessed names, Social Security numbers, birth dates, addresses and driver’s-license numbers, as well as credit-card numbers for about 209,000 consumers. The incident ranks among the largest cybersecurity breaches in history.

    Equifax shares tumbled 13 percent to $123.81 in early trading at 9:04 a.m. in New York.

    “I don’t know how the board will allow these executives to continue in their positions,” said Bart Friedman, a senior counsel at Cahill Gordon & Reindel LLP, who advises boards on matters including corporate compliance and enforcement challenges. “Yes, they should have a careful investigation and have an independent law firm interview the executives and review their emails and determine what they knew and when, but the end result is likely clear.”

    https://www.bloomberg.com/news/artic...ing-cyber-hack


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    Insider Trading here you come. I would love to hear their rationale, as Equifax realized on July 29th that it had been hacked, but they only shared this information publicly on September 8th. I can't believe they were so stupid to trade on material non-public information.

    I would be surprised if the regulators will accept their explanation. They are going to go into Equifax and turn that place apart hunting for information.

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    They claim that these executives knew nothing about the hack. So, either:

    - Equifax is lying and these traders should be prosecuted for insider trading

    OR

    - Equifax was extremely negligent in how it handled the hacking when it was first discovered. Their internal controls are lacking and all these lawyers filing class action suits will have more evidence for their case.

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    Wishes reality was like comic books tpatt100's Avatar
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    Wonder when I will get my five dollars from the class action lawsuit and the lawyers get their millions
    Opportunities are usually disguised as hard work, so most people don't recognize them.


    Ann Landers

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    You won't get five dollars. You'll get TWO years of equifax fraud monitoring. The lawyers will get billions which they will lose when they get hacked because their data was compromised by equifax.
    "You can bomb the world to pieces, but you can't bomb it into peace."



    Countdown the the End of An Error

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    Quote Originally Posted by justthinking View Post
    You won't get five dollars. You'll get TWO years of equifax fraud monitoring. The lawyers will get billions which they will lose when they get hacked because their data was compromised by equifax.
    They'll only get millions and they'll be smart enough to put it in a Cayman Island account that's not part of their credit report ;)

    I'm debating a friend on FB who has a MoveOn petition demanding that Equifax give lifetime monitoring. I told him that they're the last people on earth I want monitoring my data. They should pay us for a different non-Equifax service.

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    Wishes reality was like comic books tpatt100's Avatar
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    I remember when the rules changed and the credit reporting companies had to provide you a free copy every year (?). I thought it was lame you had to pay to find out if the company reporting your personal information had accurate reports
    Opportunities are usually disguised as hard work, so most people don't recognize them.


    Ann Landers

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    Quote Originally Posted by tpatt100 View Post
    I remember when the rules changed and the credit reporting companies had to provide you a free copy every year (?). I thought it was lame you had to pay to find out if the company reporting your personal information had accurate reports
    The Credit Reporting agencies always seemed really weird to me, especially the bad old days when it took a royal decree to see your own file. Who gave these people the authority to be guardians of this very personal data?

    (I could probably look it up, but, I'm lazy right now...)

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