The SEC announced yesterday that AT&T (NYSE: T) will pay a fine of $6 million as a result of what it found to be assorted stock trading violations, according to Bloomberg. The agency alleged that private calls were made to stock analysts at about 20 firms by three unnamed executives. The information allegedly disclosed by the carrier included internal sales data and how it might impact the company’s revenue. The intent, according to the SEC, was to get the analysts to reduce their revenue forecasts and help the company avoid missing previously stated projections. In doing so, it violated Regulation FD — or fair disclosure.
AT&T does not admit or deny the agency’s allegations under a settlement proposal filed Friday by government lawyers with a federal judge in Manhattan. The three executives will pay a $25,000 per person fine without admitting to any wrongdoing.
“We are committed to following all applicable laws and pleased to have resolution with the SEC,” Jim Greer, a company spokesman, said in an email to Bloomberg.
Dennis Kelleher, president and chief executive officer of Better Markets, a nonprofit watchdog group, applauded the action and added: “But mere money penalties are too light to stop this widespread corporate practice of market manipulation by selectively disclosing material nonpublic information to handpicked firms, giving them a unique trading advantage to rip off unsuspecting investors.”
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