A former Samsung Electronics manager has testified in the insider-trading trial of Primary Global Research LLC executive James Fleishman. On Wednesday, Suk-Joo Hwang, a 14-year employee of Samsung, admitted to disclosing to a hedge fund confidential shipping data for Apple iPad components.
The revelation of this highly sensitive and confidential information came in late 2009, just one month before Apple publicly unveiled its first generation iPad - a product that played no small role in driving the price of Apple stock above $400 per share. Hwang only admitted to his involvement after being granted immunity from prosecution.
Hwang said that during lunch at a restaurant in Mountain View, California, with Fleishman and a hedge fund manager he identified as “Greg,” he gave them confidential information about Samsung’s shipment of liquid crystal display screens it was supplying to Apple. The iPad made its U.S. debut in April 2010, four months after the lunch.
According to Bloomberg, Fleishman is charged with "two counts of conspiracy" for facilitating a scheme in which "employees at public companies passed confidential information" to fund manager clients of Primary Global.
Although he pleaded not guilty, if convicted Fleishman could get upwards of 25 years in prison.