Microsoft Exec. Robbie Bach's insider sales could get him legal trouble.

Vicious_GSR

Thomas Ricker wrote:

Robbie Bach, Microsoft's executive in charge of the Xbox game console, raised a few eyebrows recently when he sold millions in Microsoft stock just prior to going public with Xbox 360 woes. In a review of SEC filings, Robbie sold some $6.2 million worth of company stock between May 2 and Microsoft's July 5th announcement of charges exceeding $1 billion for Xbox 360 repairs. It is of course perfectly normal for high-ranking corporate execs to turn over company stock. However, this is typically done according to a schedule in order to deflect concerns over insider trading -- Bach's trades followed 8 months of zero sales. Microsoft's stock did not make a significant move after the announcement which, in legal hindsight, has led some insider watchdogs to give Robbie the benefit of the doubt. We'll see if the SEC is so forgiving.

Original Article

This could be very bad for Mr. Bach, insider trading is quite the big deal. What do you guys think about it?

P.S. Please, no 'OLOL MARTHA STEWART'

Vicious_GSR

I am suprised no one cares about this :P

YodaTuna

As far as I know, the stocks were sold from the beginning of May until the end of May and that was it. I don't know if that's close enough to be considered insider trading. Also, I don't think anyone was expecting Microsoft's stock to take a big hit from the announcement. It did drop, but not a lot and it's already rebounding.

I think it might be a case of bad timing. But we'll see.

NailbunnyPD

Its pretty interesting, but there's not much to discuss until they investigate and determine what he knew at the time. It was pretty widespread knowledge by then that the 360's were failing at a high rate, but what was going on internally will probably be the deciding factor of whether he faces any legal woes.

Accualt

Well if I can't say olol martha stewart then I've got nothin'.