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Alphabet CLO Accused With Potential Insider Trading

TECH NEWS – Alphabet is the parent company of Google, so the situation around David Drummond could be interesting – he’s the chief legal officer of Alphabet…

Larry Page, the founder of Google, as well as the former CEO of Alphabet, has suddenly resigned in early December. In this period, Drummond sold roughly 145 million dollars worth of shares. First, he liquidated around 72 million in November, followed by another 73 million on December 2. The latter is suspicious: it happened mere hours before Page’s resignation!

Drummond has been working at the company since 2002, and since 2011, he received about 190 million dollars worth of awards and stock options according to the New York Times, and while he tends to sell shares regularly, the timing is suspicious, especially how he sold more than twice as many shares (about 120 thousand) than a year before. Insider trading is monitored closely by a few investigators to gauge the management’s confidence in the business.

The twist here is that Drummond was the first lawyer of Google, and before the Alphabet reorganization in 2015, he led Google’s law firms – he’s become known for something else, too. He was accused of inappropriate relationship with a female employee, who later opened up about it – she’s Jennifer Blakely, and she accused Drummond of abandoning her and their child, as well as for violating rules about workspace relationships. Drummond did concede undergoing a difficult break-up, but he asserted that he did not enter into a relationship with anyone else at the firm.

Meanwhile, the work culture in Google/Alphabet could be questionable – in last October, Andy Rubin, the inventor of Android OS, got 90 million dollars of compensation when leaving Google… amid allegations of sexual misconduct. Thus, last year, thousands of employees walked off their jobs to protest a perceived lack of accountability at the company. At least the company no longer requires that its employees enter contracts that limit their ability to challenge sexual misconducts in court since.

The situation is interesting at one of the major tech companies. Also, a few years ago, several Ubisoft execs got caught for insider trading…

Source: WCCFTech

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