The information leak cost 6 million for AT&T
2022.12.03 10:56
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The information leak cost 6 million for AT&T
Budrigannews.com – AT&T Inc. (NYSE) in court filings, the Securities and Exchange Commission announced the phone company’s consent to pay a fine of $6.25 million in order to settle a lawsuit where it was accused of selectively leaking financial data to Wall Street analysts.
There are three company executives: according to the application, Christopher Womack, Kent Edwards and Mike Black, involved in the violation of the FD rule, also known as fair disclosure of data, agreed to pay each a fee of $25,000, without admitting and not admitting the charges that the regulator put forward.
“We are pleased to reach an agreement with the EU and are bound by all applicable laws. “The company and the company’s employees have not acknowledged, and have not challenged, the SEC’s allegations on this settlement,” AT&T said in a statement on the Reuters website.
In March 2021, the SEC commission filed a lawsuit against AT&T-based and three directors responsible for investor relations, alleging that they allegedly disclosed information about their smartphones to 20 companies.
The SEC believes that this is a violation of the fairness of information disclosure – rules established in 2000 to prevent companies from disclosing significant non-public data to investors privately.
According to the SEC, AT&T wanted to “manage” these analysts and force them to lower their revenue forecasts so that the real results would correspond to lower forecasts, and investors would not be disappointed, which could affect the share price of her company.
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