Calgary's Corporate Drama: Vermilion Energy Insider Faces Hefty C$400,000 Fine And 10-Year Trading Ban
Portfolio Pulse from Lekha Gupta
Behjat Haghshenas, a former Senior Reservoir Specialist at Vermilion Energy Inc (NYSE:VET), admitted to illegal insider trading and agreed to pay a C$400,000 fine and accept a 10-year trading ban. Haghshenas profited C$146,400 from selling Leucrotta shares immediately after the public announcement of Vermilion's acquisition discussions with Leucrotta. This settlement is the largest in about a decade. Vermilion recently projected 2024 production of 82,000 – 86,000 boe/d. VET shares rose 3.05% in premarket trading.
December 28, 2023 | 12:41 pm
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Vermilion Energy insider admitted to illegal insider trading, resulting in a C$400,000 fine and a 10-year trading ban. The company's shares are up 3.05% in premarket trading.
The news of the insider trading settlement may have a mixed impact on Vermilion Energy's stock. On one hand, the closure of the legal issue and the penalty might be viewed positively as it removes uncertainty. On the other hand, the association with insider trading could be seen negatively by investors. However, the premarket stock price increase suggests a short-term positive impact, likely due to the company's positive production outlook for 2024 overshadowing the negative news.
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