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CVCO.US
On September 2, 2021, the SEC filed a complaint against Cavco, former CEO Joseph Stegmayer, and former CFO and Chief Compliance Officer Daniel Urness. The SEC complaint alleged that Stegmayer and Urness caused Cavco to purchase shares of publicly traded companies on material non-public information.
On this news, shares of Cavco fell by 2.5% to close at $252.48 per share on September 3, 2021.
Going back, on February 4, 2019, the Company provided a corporate update regarding the SEC investigation, disclosing that the SEC had requested additional documents. The Company also announced spending and expecting to spend, millions of dollars on legal and insurance expenses in relation to the SEC’s subpoenas and the Company’s independent investigation into the matter.
Previously, On November 8, 2018, the Company reported to the SEC that for the period ending September 29, 2018, it believed its recently-departed CEO, Stegmayer, “traded in certain publicly traded stock in his personal accounts as well as in accounts held by the Company at a time when the Company had agreed to refrain from such trading.” Furthermore, the Company reported that the SEC had issued subpoenas to it, and also to Stegmayer, relating to the trading in the stock of another public company.
The case was related to the trading operations of the CEO in his private and Company accounts using material information about merger discussions with one of its competitors, Skyline, after signing an NDA. On September 19, 2017, Stegmayer and Urness (CFO) called Skyline’s investment bank and expressed interest in acquiring Skyline at $13.50 per share. Between September 20 and October 31, 2017, Cavco purchased 34,730 shares of Skyline at around $11 per share. Cavco’s 2017 purchases of Skyline shares were not reported to Cavco’s board of directors until October 2018, after the SEC served a subpoena on Cavco for information related to this trading. Thus, all relevant procedures, internal policies, and regulations were violated, and as a result, the interests of all stakeholders of the Company.
Alleged Offence
Mismanagement
Misleading Statements
Failure to Disclose
Insider Trading
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02 September 2021
Collecting participants…
Created by Stan Vick, Scout

Cavco Industries Inc

Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company mark...

    Ticker
    CVCO.US
    ISIN
    US1495681074
    CIK
    278166
    Sector
    Consumer Cyclical
    Industry
    Residential Construction
    Country
    USA
    Address
    3636 North Central Avenue, Phoenix, AZ, United States, 85012