Here’s What Citigroup Owes Over Leaked Apple Secrets
Massachusetts’ securities regulator has hit Citigroup (NYSE:C) with a $30 million fine due to an analyst’s leak of confidential information about one of Apple’s (NASDAQ:AAPL) suppliers, reports The Street. In December 2012, Citigroup research analyst Kevin Chang gave several different clients an early look at a research report about Apple supplier Hon Hai Precision Industry before it was publicly released.
Hon Hai Precision Industry, also known as Foxconn, is a major supplier for Apple’s iPad and iPhone products. The report included updated production numbers for Hon Hai that resulted in Apple being downgraded by Citigroup from a “Buy” to a “Neutral” rating.
According to the state’s order, the recipients included T. Rowe Price, Citadel, GLG Partners, and three units of SAC Capital. SAC Capital is also currently the target of a separate investigation into other insider trading violations. The order also noted that several Citigroup employees made Apple stock sales based on the unreleased information in the research report.