Caterpillar Pays Half Million In Fines As President Unloads Shares
Caterpillar Inc. (NYSE:CAT) was recently forced to pay the state of California $510,000 for fines, at the same time the company president has sold hundreds of thousands of dollars in stock.
According to the Sacramento Bee, the California Air Resources Board (ARB) recently announced that Illinois's Caterpillar must pay the fine for shipping almost 600,000 engines used in trucks for on- and off-road use that were not developed with legally required emissions standards.
The fine came after a joint investigation between the U.S. Environmental Protection Agency and the U.S. Department of Justice, and is in line with a much bigger national settlement the company is paying after violating parts of the Clean Air Act. ARB stated that Caterpillar has also been asked to recall and re-engineer the engines that are not compliant with the states' standards.
In addition to the company's fines, group president Richard Lavin has been selling shares in recent months. In the last three months, he has sold 6,000 shares through insiders trades, each ranging between $85.26 and $102.73, for a total of $546,540.
Do you think now is a good time to follow Lavin's example and sell?
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