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Insider trading employee to be sentenced

NZ Newswire logoNZ Newswire 12/06/2017

© Rex Features An employee of a publicly listed New Zealand company is to be sentenced on Tuesday for passing on insider information.

The person was convicted of sending texts containing confidential information about the performance of technology company Eroad after pleading guilty in the Auckland District Court in April.

The person sent the texts to a former Eroad employee, who then traded 15,000 shares in the company, the Financial Markets Authority alleges.

The former employee has also been charged with insider trading.

The charges against the pair were the first brought under the Financial Markets Conduct Act 2013.

The FMA alleges the confidential information contained in the texts related to the performance of Eroad, which provides software to logistics companies, in the period ended September 30, 2015.

Eroad posted a profit of $611,000 in the six months ended September 30, 2015, from a year-earlier loss of $1.9 million. Sales jumped 55 per cent to $12.2m.

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