Insider trading charges have been filed against a current and a former employee of Eroad by The Financial Markets Authority (FMA).
It is alleged that the current Eroad employee texted the former employee with confidential information about Eroad’s performance up to 30 September 2015, the NBR reports.
The former employee then traded 15,000 Eroad shares.
“The integrity of NZ capital markets is a strategic priority for the FMA. Trading misconduct, such as insider trading, negatively impacts the integrity and reputation of our markets, and the confidence of people investing in them,” FMA general counsel Nick Kynoch says.
Eroad chairman Michael Bushby says the current employee has been suspended.
“Irrespective of the FMA action, we are taking appropriate disciplinary action regarding the alleged sharing of confidential financial information for personal share trading,” he says.
“We accord the security of our company information the highest priority.
“As a listed company we take our responsibilities very seriously and ensure that all our team has training and information to understand their obligations, the importance and consequences of insider trading laws and our own responsibilities.”
Eroad has not been charged with any offence and is helping with the investigation, the FMA says.
