Shipbuilder Austal Backs SEC Giving Penalty to Its Shareholders
Company Says SEC Action Will Help Protect Investors From Future Harm
Austal Limited (ASX:ASB), a global shipbuilder, has expressed support for the Securities and Exchange Commission's (SEC) decision to impose a penalty on its shareholders. The SEC alleged that certain shareholders engaged in insider trading by selling Austal shares before the company announced a significant contract loss.
Austal said in a statement that it "fully supports the SEC's action and believes that it is an important step in protecting investors from future harm." The company added that it is "committed to maintaining the highest standards of corporate governance and transparency."
The SEC's investigation found that the shareholders in question had access to confidential information about the contract loss before it was publicly announced. This information allowed them to sell their shares at a higher price than they would have been able to if they had not had this information.
The SEC's penalty includes a disgorgement of profits and a civil penalty. Austal said that it will not be liable for any of the penalties imposed by the SEC.
The SEC's action is a reminder that insider trading is a serious offense. Investors who engage in insider trading can face significant penalties, including fines, imprisonment, and disgorgement of profits.
Austal's support for the SEC's action is a positive step. It shows that the company is committed to protecting investors and maintaining the highest standards of corporate governance.
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