Nokian Tyres’ former board face insider trading charges
Nokian Tyres 2015-2016 board members are facing insider trading charges and the company faces a fine of up to 850,000 euros. At least that’s what the public prosecutor in Finland is demanding.
The case dates back to 2016 when reports surfaced that Nokian Tyres had manipulated car magazines’ test results by submitting modified tyres for testing. Just before the news reports were published, some board members allegedly sold their share options before the company admitted cheating in a stock exchange filing. At the time, the news sent Nokian Tyres’ share price down over 7 per cent and the value of the management’s options down 44 per cent in February 2016, Reuters reported
In 2017, the Finnish tax authorities submitted an application for an investigation into whether employees misused inside information in stock transactions. According to the tyre manufacturer, these investigations have now been completed.
The public prosecutor’s office has decided to indict six management members, including the current board members Raimo Lind and Inka Mero and the former president and CEO Ari Lehtoranta. In addition, four employees who worked for the tyre manufacturer in 2015 are to be charged with the misuse of inside information. All of the accused deny their involvement in criminal activities. The company has declined to comment on the matter.