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Toronto - The chief financial officer of Menu Foods sold about half his shares in the company just three weeks before a massive recall of its pet food products, Canadian insider trading reports show.
CFO Mark Wiens sold 14,000 shares for $89,900 on Feb. 26 and Feb. 27. The shares are now worth about $54,000.
"He feels just awful that this link has been made," company spokesman Sam Bornstein said today.
But Bornstein said Wiens faced a restricted window in which he could sell his shares.
Menu Foods stock sold before recall
The chief financial officer (CFO) of Streetsville-based Menu Foods says there was nothing criminal or inappropriate about him selling nearly half of his stock in the company just a few weeks before it announced a pet food recall.
Reports surfaced today that Mark Wiens sold 14,000 units for $102,900 on Feb. 26 and Feb. 27. As of Monday's close of $4.46, the units would be worth $62,440.
Originally posted by djohnsto77
Insiders sell stocks for many reasons, it's wrong to accuse him of foreknowledge of the poisoned food without more evidence.
It should be investigated though.
Second, the timeline of the recall raised a number of concerns. Although there have been some media reports that Menu Foods started getting complaints as early as December 2006, FDA records state the company received their first report of a food-related pet death on February 20.
One week later, on February 27, Menu started testing the suspect foods. Three days later, on March 3, the first cat in the trial died of acute kidney failure. Three days after that, Menu switched wheat gluten suppliers, and 10 days later, on March 16, recalled the 91 products that contained gluten from their previous source.