NCR Stock Falls On Bribery Allegations
As allegations fly that NCR Corporation (NYSE:NCR) employees violated Syrian sanctions and a federal corruption law, company executives have been selling millions of dollars in stock through insider trades, suggesting they may not feel confident about the outcome of the impending judicial action.
According to The Associated Press, the business technology firm's shares fell as much as 10 percent after the news broke late on Monday. The Wall Street Journal reported that an anonymous source said its fellow employees may have violated a U.S. law, the Foreign Corrupt Practicies Act, while in China and the Middle East. This came shortly after another report of one of NCR's subsidiaries allegedly working with a Syrian bank that had been sanctioned.
The company, which makes ATMs as well as several other business products, has not commented on the reports. Analysts, however, say NCR's earnings growth could be significantly impacted by the allegations if they turn out to be true.
Perhaps this is why there has been so many insider transactions among company officials recently. In the last three months, executives, including Peter Dorsman, executive vice president and chief quality officer and John Bruno, chief technology officer, have sold a total of $4.67 million in shares.
Do you think these officials knew about the alleged actions?
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