The controversy around MGM Resorts’ acquisition of LeoVegas continues. Over the weekend, Swedish authorities arrested three men from the LeoVegas team on insider trading charges.
The case is basically about a person at the company having information that is not public and that affects the price when it is made public. Then you can take the opportunity to take some positions before the publication and then there are other people who have traded in this share, Chamber prosecutor Pontus Hamilton told Swedish news outlet Aftonbladet.
The investigation into potential insider trading got underway in June with the full cooperation of LeoVegas. After the investigation raided the offices this past summer, LeoVegas issued a release publicly emphasizing that no one was charged with a crime in relation to the raid. Months later, that has no changed.
One of the three men arrested is said to be a top manager within LeoVegas who used his knowledge of the impending sale for financial gain. His two associates are allegedly not tied to the company but helped execute the beneficial financial transactions.
After the latest charges, LeoVegas Director of Communications and Public Affairs Daniel Valiollahi had this to say:
“It has come to our attention that an employee of the company has been served with suspicion of insider trading. It is about an employee and not a person on the board or management team. As a company, we make high demands on ourselves when it comes to regulatory compliance, and since June we have cooperated with the authorities in their investigation.”
The sale received regulatory clearance and MGM shareholders approved the sale at the beginning of September. Earlier this month, MGM pointed to the acquisition as one of several reasons why the company is “bullish” on its digital growth in the coming quarters.