Carl’s Jr. Accused of Insider Tips
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Sixteen people, most of them members of the family that controls the Carl’s Jr. hamburger chain, were accused of insider trading in a $1-million civil complaint filed today by the Securities and Exchange Commission.
The complaint alleges that company Chairman Carl N. Karcher and his brother, Donald F. Karcher, president and chief operating officer, and their wives tipped others to adverse financial news about Karl Karcher Enterprises. The complaint says the family members sold stock and other holdings before the company released a quarterly report Nov. 2, 1984, that showed profits had dropped 50%. Those named in the complaint made profits or avoided losses totaling $310,000, said Irving Einhorn, SEC regional manager, adding that was a conservative estimate.
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