Competitors Mattel and MGA Entertainment have publicly sued and countersued each other...yet through it all, MGA's Billionaire CEO Isaac Larian is buying and selling shares of Mattel in order to come out even richer! IRS documents that had never been seen before say this isn't unusual. The records are showing CEOs making multimillion dollar bets made at just the right time! Mitch Kramer of Fluent Financial says from a legal standpoint, that's not insider trading because they can use information from multiple sources and act upon that information.
How is the Legal?
Kramer making a very educated 'guess' why they information is coming out now. "This government is very interested in trying to tax the rich because they say: 'They're not paying their fare share! Maybe what the IRS should do is turn their sights to Capitol Hill with all the insider trading going on there all the time!"
Legally, the CEO of a public company can argue their well-timed trade of a competitor’s shares was informed by a deep knowledge of the industry, not a nonpublic tip.
Photo:Getty
CEOs getting richer on competition's stock buysPhoto: Getty Images