Former Foot Locker exec charged with insider trading
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A former Foot Locker executive was charged with insider trading by the U.S. Securities and Exchange Commission and has agreed to pay roughly $236,000 to settle the claims, subject to court approval.
Barry Siegel, who served as Foot Locker’s senior director of order planning management for North America at the time, did not admit or deny the allegations, according to a Tuesday press release. As part of the judgment, Siegel will be barred from serving as an officer or director at a public company.
When asked for comment on the news, a Foot Locker spokesperson confirmed Siegel was a former employee and directed Retail Dive back to the SEC.
According to court documents, Siegel was accused of insider trading in two specific instances, both before Foot Locker earnings reports. The first was in advance of Foot Locker’s first quarter in May 2023, which allowed him to secure a profit of almost $83,000, and the second was ahead of the retailer’s second quarter in August 2023, which netted a gain of roughly $30,000.
The SEC argued that in both of these instances, Siegel was in possession of “material nonpublic information concerning Foot Locker’s operating results, including negative sales and inventory figures.” Siegel had worked at Foot Locker from 1998 to 2006, and again from 2011 to 2023, according to the SEC, and he was let go during a round of layoffs in August 2023.