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FSA fines Wolfson over iPod cover-up
Robert Lea20.01.09
Wolfson Microelectronics has been found guilty of hiding inside information on last year's decision by Apple to dump it from the development of some of its iPod products.
The finding that the microchip maker allowed a false market in its shares to exist for more than a fortnight brought a fine of £200,000 from the Financial Services Authority, commuted to £140,000 for Wolfson's co-operation in the investigation.
The FSA today warned that listed companies must disclose any bad news even if its effects are mitigated by other news.
Wolfson's investor relations advisers, Makinson Cowell, who told Wolfson it did not need to tell the market about iPod's decision, were also rebuked.
Apple decided last March to halt orders worth 8% of Wolfson's annual revenues. The news was not disclosed until 17 days later, prompting an 18% crash in the shares, when brokers Citigroup and Cazenove were told.
