Fingerprint Cards former CEO, board member arrested in insider probe

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[January 23, 2017]  STOCKHOLM (Reuters) - Fingerprint Cards said on Monday board member Lars Soderfjell and former CEO Johan Carlstrom have been taken into custody for alleged market abuse, sending the biometric technology company's shares down more than 7 percent.

 

The Swedish Economic Crime Authority said in a statement two people were arrested on suspicion of aggravated insider trading after a substantial amount of shares were sold ahead of a profit warning from the company in December.

The authority did not name the suspects.

"We take very seriously on these events and the information that now has come to our attention. We are of course cooperating with the Swedish Economic Crime Authority," Fingerprint Cards Chairman Jan Wareby said in a statement.

Soderfjell and Carlstrom did not immediately respond to Reuters' requests to comment. Fingerprint Cards was not immediately available for further comment.

The company's shares were down 7.5 percent by 1106 GMT. Since end-August, the shares have roughly halved in value.

Carlstrom was replaced as chief executive in 2014 after police began an investigation into insider trading. Fingerprint Cards then chairman said Carlstrom denied the allegations.

He formally stepped down as CEO in 2015. He remains one of the company's major shareholders.

The company in December cut its revenue forecast for this year after overestimating demand for its touch sensors in smartphones.

(Reporting by Anna Ringstrom and Daniel Dickson. Editing by Jane Merriman)

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