Fingerprint Cards CEO suspected of insider trading

September 11, 2014 - 

Fingerprint Cards AB announced on Thursday its CEO and a company shareholder were under investigation for insider trading.

Chief Executive Johan Carlström has been replaced by Executive VP and CTO Jorgen Lantto, assuming the position of Acting President, until further notice.

On Wednesday, trade in Fingerprint Cards’ shares were suspended on the Stockholm stock exchange and Bloomberg reported a 42 percent plunge.

“I’m innocent and that will be proven,” Carlström said in a phone interview. “Why would I take the risk? So far the prosecutor has proven nothing. The allegations will be dismissed when he investigates more.”

The company has cooperated with the Swedish Economic Crime Authority in its investigation, and has decided to launch an internal investigation.

“The situation that has arisen is deeply regrettable and, naturally, we take a very serious view of the suspicions now being directed at the company’s President and the former Board member,” Fingerprint Cards said in a statement posted on the company’s website.

Fingerprint Cards announced last week that its providing Chinese smartphone maker Huawei with fingerprint sensors for its soon to be released Ascend Mate 7. Shares jumped nearly 11 percent.

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About Stephen Mayhew

Stephen Mayhew is the publisher and co-founder of Biometrics Research Group, Inc.. Connect with Stephen on LinkindIn.