No one will go to prison
The SEC will settle this for a 1 time fee and 'continued monitoring'.
FedEx execs not only hid the impact of the NotPetya ransomware on their business but personally profited by selling off tens of millions of dollars of their own shares before the truth came out, a lawsuit filed by the delivery business’ own shareholders claims. The legal complaint [PDF], filed in Delware, USA, this week, …
First the lawsuits are civil complaints. So there's really no option to send someone to prison.
If the SEC decides to go after them for violating Rule FD, the odds of prison time is also slim. In most cases its a disgorgement of profits and an agreement to not hold an officer role in a publicly traded company.
Where you do see SEC violations ending in jail time is when there is an active manipulation or you end up lying to investigators.
For some cases, its very hard to prove intent. For example, Did these guys hold a ton of shares and only sold off a percentage of their shares? Now they could say it was a coincidence because they needed to re-balance their portfolios. If there's a paper trail, things get easier but if you're smart, you can hide it.
Also there's no monitoring. Individuals acted on their own. Not a corporate governance issue.
"We value your business and are doing everything we can to fuck up up any privacy you may have entrusted to us."
"Please hold. Your call may be monitored and dropped at our convenience."
"To speak in a real language, please press umlaut."
"All of our representatives have quit."
"Visit www.fedexscam.ru for more information."
Have a nice day. CLICK.
About the behaviour I'd expect from the logistics industry. It's chock full top to bottom with sleazy sharks.
I grew up in the logistics industry as well because my old man also had a courier business for over a decade while I was a kid before he retired.
It was even worse back then. If you wanted business back then you weren't bidding on price or quality. You were outbidding on kickbacks...especially with the big boys. It's probably still the same now.
FedEx will arrange the circulation of some brown envelopes to key individuals and shrug this off.
Should have read this report which would no doubt have protected them from the cyber ransomware :]
"2019 Global Cyber Risk Perception Survey"
Wow what an unsurprising story, which essentiall equates to something similar to this:
"Sociopath(s) worms their way into upper echelon of some organisation, pretends they know what they're doing, then when the shit hits the fan, scurry away with as much treasure as possible stuffed into their pockets"
Sounds familiar, this is something that is played out all to often these days
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