news 5 months ago

Former Starbreeze CEO Cleared of Suspicion In Company Insider Trading Investigation

Variety — Brittany Vincent

The Swedish Economic Crime Authority has cleared Bo Andersson Klint, former CEO of Swedish developer Starbreeze, as a suspect in a series of insider trading offenses involving the company.

Instead, the Swedish Economic Crime Authority is now investigating Sweden’s Carnegie Investment Bank, who actually sold Klint’s shares of the company in his place. Back in December, the Authority raided Starbreeze headquarters to glean additional information about the issue. The Swedish Economic Crime Authority’s Niklas Ahlgren confirmed to Variety that the raid had taken place at the time, which was just one of several conducted as part of a larger investigation into Starbreeze.

The chain of events kicked off with two of Starbreeze’s senior executives selling a number of shares in November. The shares were sold off just before Starbreeze announced a chain of negative news, such as its company-wide mandate to cut costs and its eventual insolvency. Following the former finance manager and CEO’s sales of their entire stakes in the company in November, Starbreeze’s stock prices dropped around 80 percent.

Previously, Klint stepped down and resigned from the Starbreeze board of directors following a lukewarm reception to “Overkill’s The Walking Dead.” While the EBM has completely written off Klint now in terms of suspicions involving insider trading, there are still several allegations afoot, which the EBM is continuing to investigate.

According to Starbreeze, Klint’s share sales back in November were “forced” sales that occurred as a result of falling share prices, according the Swedish financial newspaper Dagens Industry. The investigation is still underway at this time.