Helping a Company Survive a CEO’s Insider Trading Indictment

A family-owned business services company turned to Linhart PR when its CEO, a fourth-generation leader, was indicted by the U.S. Department of Justice on insider trading charges and sued by the Securities & Exchange Commission. Linhart PR developed strategies for communicating with employees, investors, customers and the news media, and served as company spokesperson.

Client
Services
Crisis & Reputation Management
Leader & Employee Communications
Industry
Professional & Financial Services
Awards

CHallenge

A 100-year-old closely held business services company needed to deal with the indictment of its CEO, a fourth-generation family leader of the company. The company focused on protecting its employees and customers.

Solution

Linhart PR helped the company make clear that its CEO’s personal legal difficulties had nothing to do with the company or its commitments to clients and employees. Working closely with the president and CFO, we developed all messaging and materials for employees, clients and the news media, and acted as media spokespersons for the company as the situation evolved over several months, leading up to the CEO’s eventual resignation and guilty plea.

Results

  • Best possible media coverage under the circumstances – clearly distancing the company from the individual, without prejudicing the case
  • Less-than-expected attrition of clients and key staff
  • Eventual acquisition of the company, a positive development for all parties
  • Situation described as a textbook case in crisis response by the Denver Business Journal

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