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Way back in 2006, Tracinda Corporation, owned by investor Kirk Kerkorian, sold a stake in General Motors. The Security and Exchange Commission later charged Kerkorian for misleading potential stock purchasers about his plans to sell the stock.
Last week, the SEC ruled that Kerkorian had indeed misled and called for his company, Tracinda, to “cease and desist from committing or causing any violations and any future violations.” The federal agency said that when Kerkorian sold his 14 million shares of General Motors stock, he did not disclose that he had plans to sell 28 million shares. Later Kerkorian, through his company, sold another 14 million shares of GM stock, then a few days later sold the rest of his stake in General Motors.
Tracinda had announced at the time of the sale of the first 14 million shares that it might “acquire or dispose of additional shares” while it was in fact out to sell additional shares.
No fine was imposed. However, Tracinda did re-write its agreement governing its current 6.43 percent stake in Ford.
via Detroit News
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