NWA management busted

[GogglesPisano]

Suit accuses NWA officials of insider trading
Wednesday December 21, 10:36 am ET


A New York law firm on Tuesday said it has filed a class-action shareholder lawsuit against several Northwest Airlines Corp. executives and directors, accusing them of insider trading.
The lawsuit accuses Northwest CEO and Director Doug Steenland, Chief Financial Officer Bernard Han, Chairman Gary Wilson and Director Alfred Checchi of selling company stock for proceeds of more than $30 million while in possession of nonpublic information about Northwest's plans to file for Chapter 11 bankruptcy. The Northwest officials also allegedly made false and misleading statements about the company's financial prospects, according to the suit.

Milberg Weiss Bershad & Schulman, which filed the lawsuit, said the suit does not name the company because it is in Chapter 11.
The suit covers shareholders who bought Northwest (Pink Sheets: NWACQ - News) stock between April 21 and Sept. 14.
Published December 21, 2005 by The Business Journal</I>

 

[Longhorn]

Finally some good, and honest news!!!!

 

[pilotyip]

It will be interesting if they can penetrate the "Corporate Veil". Lawyers can explain it.

 

[320AV8R]

Hopefully some "justice" can finally be served to these weasels.

Maybe something productive will happen, besides more lawyers getting rich.

320AV8R

 

[YourPilotFriend]

$10 bet says they use current NWA funds to pay their legal fees. Any takers?

 

[flatspin7]

Good---NWA upper management is some of the biggest anti-labor scum bags in the industry.

I hope they go to a "Federal Pound-me-in-the-Ass Prision"

 

[ultrarunner]

Each of those NWA employess are 'restricted' employees as far as selling stock and exercising stock options. You can be pretty well assured that any transactions were previously cleared through external and internal legal cousel. I may be going out on a limb here, but I'll bet you that 10 bucks their bases are covered! ;-)

 

[YourPilotFriend]

Yes they have their bases covered, the selling of the stock was at a predetermined level and automatically sold it when it hit the numbers. Given current market conditions it would be hard to actually prove they knew bankruptcy was coming, so getting them on insider trading is going to be tough. However, did they purposely bankrupt the company once the stock was sold is the $64,000 question. I most certainly think so.