The federal courts have ruled in a case between the Securities and Exchange Commission and seven current and former employees of Flowers Foods.
The sec accuses the employees of insider trading from December 2002 through January 2003.
The complaint says on January 30, 2003, the company announced a higher-than-expected fiscal fourth quarter 2002 earnings per share. The company later released another statement about the sale of its Mrs. Smith's bakeries' frozen dessert business, after which flowers traded up $6.12, closing at $23.20.
"The seven individuals will pay more than $110,000 in fines and penalties for the incident. The Vice-President of Communications here at Flowers' Office would not talk on camera but did release a statement."
"The company is fully cooperating with the investigation and is reviewing both the complaints filed by the SEC and the settlement."
The SEC accuses the employees of obtaining non-public information prior to the sale of its Mrs. Smith's business, using the information to illegally earn trading profits.
The SEC says the employees neither denied nor admitted to the allegations. The defendants agreed to pay the fines and refrain from future violations.
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