Three of Bobby Kotick's friends are under investigation by the government for insider trading. The three made a $108 million investment in the company just days before the Microsoft deal was revealed.
Insider trading RSS
The SEC accused a former Microsoft employee of profiting from stock trades before key public announcements, such as a drop in Windows revenue and the Nokia acquisition in 2013.
Following the sentencing of his partner, former senior Microsoft manager Brian Jorgenson has received two years in prison for his role in a $400,000 insider trading scheme.
Sean Stokke, a Seattle stock trader and associate of former Microsoft manager Brian Jorgenson, has been sentenced to 1.5 years in prison after insider trading which earned him over $400,000 in total.
The SEC has announced that they are charging a senior Microsoft manager with insider trading by providing a friend with insider information.
The first lawsuit alleging insider trading has been filed against Zynga. The suit alleges that insiders at the company had prior knowledge of poor results and sold shares at higher prices.
Facebook founder Mark Zuckerberg is facing a class action suit from disgruntled Facebook investors who claim that he dumped $1 billion of stock on insider knowledge that it was grossly overvalued.
