In general, insider trading affects the investors who buy a particular company’s stock, not the consumers who buy its products – one reason that we’ve largely avoided covering the insider trading scandal that has netted a number of high-tech executives, including executives from IBM and Intel.
The Wall Street Journal’s latest report, however, names ex-AMD chief executive Hector Ruiz as one of the tipsters in the Galleon case. He is not a defendant, the paper reported. Ruiz, now chairman of GlobalFoundries (the spinoff of AMD’s manufacturing arm) served as AMD’s chief executive during the period of time covered by the investigation. According to the Journal and Bloomberg, Ruiz leaked the AMD manufacturing spinoff before the deal took place, but did not profit from the leak.