He didn't sell on schedule. In other words, he had a bunch of shares that he wanted to drop quickly for some reason, instead of selling mabey 20% of what he wanted to sell for a "scheduled" release, or in other words something that might take a year to fully get done.
This doesn't mean that he should even go to court for insider trading, just that it was an unusual event.
Secondly, the matter of the failures of the XBOX failures seems like some thin gruel to me. Granted, the failures have had a big impact on the sales of the 360 as it has just taken a lot of money away from it that has been budgeted. I really think that the 360's failures is a big reason why its sales (thankfully) haven't came up to 60K a week, and also why SONY of all companies is beating MS when it comes to nabbing sweet exclusives. MS has seen that its 360 is performing poorly right now, and is keeping them on a tight leash.
But, to be considered insider trading and illegal, the trading must be trading on information that is:
1. Material- Meaning that whatever secret knowledge is being traded because of, will have a big impact on financial performance. I would say that this trading is material.
2. Non-public information - If the stock's owner trades on information that is non public, meaning that the public would have no idea about it..... it would be considered non-public information. I honestly can't buy this one. I think that the public has been informed to at least some degree about the horrible failure rates of the 360, even given microsoft's refusal to discuss the matter.
Because this trading doesn't appear to violate the second reeequirement for bad trading I would say, and i'm not a lawyer just a business student, that this doesn't look THAT bad.
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