Phoenix AZ-based Swift Transportation Co Inc has enlisted an outside attorney to investigate its chief executive officer’s purchase of company stock shortly before shares soared on an earnings forecast.
Accoring to the company, Jerry Moyes, its chief executive officer, attempted to rescind the stock purchases, but it was too late to withdraw them. The bulk of the profits amounting to about $625,000 will go into a trust controlled by Swift’s independent directors, the company said in a filing with the Securities and Exchange Commission.
Moyes bought 203,000 shares of Swift stock a few days before and on May 24, when the firm said it would do better than analysts had predicted. On May 25, the stock surged 20%, giving Moyes a $625,240 gain on paper.
In its SEC filing, Swift said it told an outside attorney to review purchases made May 21 and May 24. The query did not include purchases made May 19.
The attorney was asked to advise Swift on appropriate corrective measures, such as evaluating current insider trading policy.