Webvan Founder Sold Out Right Before Bankruptcy Declaration
from the doesn't-look-good dept
Webvan’s founder and chairman Louis Borders sold 45 million of his 49 million shares in the company a couple of weeks before they shut down. I’m no expert, but that certainly suggests insider trading. Sure, the stock was at six cents at the time, but still. He obviously knew more about what was going on than your everyday shareholder – and he still made out with $2.7 million.
Comments on “Webvan Founder Sold Out Right Before Bankruptcy Declaration”
I'm no bankruptcy lawyer...
…but don’t judges have the option of looking into transactions undertaken immediately before declaring bankruptcy and undo-ing them? I’m pretty sure this is the case for personal bankruptcies — can anyone state whether it is also the case for corporate Chapter 11’s?