Menu Foods CFO sold stock prior to the recall

[StGermain]

Here’s the story about the recalled pet foods’ CFO having sold 1/2 of of his stock in the company three weeks before the recall was announced. Of course, he says it was just “a horrible coincidence”.

StG

[Mindfield]

I hereby dub this scandal “Menron.”

[ASAKMOTSD]

Maybe he had a “standing sell order” like Martha…

[Caridwen]

I call bull on this story. I hope he’s investigated. This story has me so mad that I can’t stop thinking about it.

[Lamar_Mundane]

I’m no great fan of CEO’s in general, but do you really think that this guy knew he had foreknowledge that his product was toxic and rather than recall it and go after the responsible parties (Chinese wheat, IIRC), he said “Fuck it, let the animals die, I’ll just cash in now?”

[Tuckerfan]

@Lamar Mundane

I’m no great fan of CEO’s in general, but do you really think that this guy knew he had foreknowledge that his product was toxic and rather than recall it and go after the responsible parties (Chinese wheat, IIRC), he said “Fuck it, let the animals die, I’ll just cash in now?”

Given that they had animals dying on them from the stuff before they ever sold it to the public, but couldn’t be bothered to figure out what it was that was killing the animals, I wouldn’t put it past 'em.

[StGermain]

Lamar - From this article on Scientific American:

The company had received reports of potential problems almost a full month earlier, on February 20. But instead of alerting the public, it initiated “tasting trials” on 40 to 50 dogs and cats. Seven of the study animals died of renal failure, beginning on March 2, five days after the testing started. The company still did nothing, waiting over two weeks longer before finally taking action.

They knew on Feb 20th. He sold his shares Feb 26th &27th. Pretty damning.

StG

[Lamar_Mundane]

Well, OK, I haven’t been following this much. It is certainly more damning in this light.

[The_Scrivener]

This is not the first time I’ve wished I could line up a CEO against a wall, but it is the first time I’ve wished to do this and leave the corpse for stray dogs to dispose of.

[Maeglin]

I am going to reserve judgment.

I work at a global financial services conglomerate. Any time there is a grade a fuckup, people will do anything they possibly can to prevent upper management from getting involved. I’d be shocked if the CEO knew there was a problem within a week of it surfacing.

[StGermain]

He’s not the CEO, he’s the Chief Financial Officer. Further down the food chain. When I worked for the biggest video distributor and book distributor in the country, the CFOs knew a lot about what went on day-to-day. From an ad that went out wrong to sales making a really good deal, he knew about it, because it all effects the bottom line eventually.

StG

[Maeglin]

@StGermain

He’s not the CEO, he’s the Chief Financial Officer. Further down the food chain. When I worked for the biggest video distributor and book distributor in the country, the CFOs knew a lot about what went on day-to-day. From an ad that went out wrong to sales making a really good deal, he knew about it, because it all effects the bottom line eventually.

StG

Makes no difference. I happen to be in finance. Any CFO worth his salt should spend more of his time bullshitting the street than worrying about ads that go out wrong.

[Paul_in_Qatar]

If American law applied (does it?) this could be a Bad Thing for them.

[StGermain]

Paul - I think the Canadian Securities Commission is looking into it.

StG

[Northern_Piper]

There is no Canadian Securities Commission - securities are provincially regulated. Since it happened in Ontario, the Ontario Securities Commission would have jurisidiction.