Ubisoft Executives Accused Of Insider Trading By French Stock Market Regulators
Not a great day for the company as five Ubisoft executives have been accused of insider trading by French stock market regulators claiming they knew the stock’s price would drop before they ended up selling their stock.
AMF, France’s stock market regulator in question here has accused five Ubisoft executives including Ubisoft Montreal’s CEO Yannis Mallat of insider trading, claiming they all sold stock in the weeks before October 15, 2013 when Ubisoft announced that Watch Dogs and The Crew will be delayed to 2014.
AMF claims that the Ubisoft executives knew of the delay well beforehand and started selling stock in advance since after the announcement, Ubisoft stock dropped by around 25%. This move violates French laws of insider trading and since Ubisoft is originally a French company with headquarters based in Paris, it has to adhere to these laws.
Ubisoft released a statement today to Kotaku, suggesting that it is unlikely that such insider trading took place, the company also pledged full support to all the five people involved during the upcoming Sanctions Board proceedings.
Ubisoft is aware that an action being brought by the French Autorité des Marchés Financiers (AMF) involves five of our team members. Those individuals vigorously dispute their implication in this matter and the AMF’s interpretation of the facts. Yves Guillemot, Co-Founder and CEO of Ubisoft, does not question the good faith of the people involved and has reassured them that they have his full support and trust.
Yannis Mallat recently responded to these allegations in an interview with a Canadian newspaper saying that he had no prior knowledge to any such delay and is innocent of these charges.
Three other Ubisoft executives accused by AMF have filed a motion with Superior Court of Quebec to declare AMF’s claim invalid as well as seek damages against AMF France and AMF Quebec.