Market abuse probe leads to former CEO of Fingerprint Cards being arrested

As per Fingerprint Cards, their previous CEO Johan Carlstrom and member of the board Lars Soderfjell had been arrested. Alongside capturing two individuals, house quests were performed by Swedish Economic Crime Authority. An announcement was issued by Fingerprint Cards Chairman Jan Wareby saying, “We consider important these occasions and the data that now has become obvious. We are obviously participating with the Swedish Economic Crime Authority.” Shares of Fingerprint Cards dropped by 7.5% at 1558 GMT.

Carlstrom’s legal counselor Per Samuelsson said Carlstrom negated the assertions against him. Soderfjell did not quickly share any information. Redeye examiner Joel Westerstrom stated, “I don’t want to judge before we know more. But it is crystal clear that already this news dents the market’s confidence in the company. While this isn’t about the daily operations, a former CEO and a board member ending up in custody is never good.”

Fingerprint Cards, a worldwide market pioneer in biometrics for cell phones, in December cut its income gauge for 2016 in the wake of overestimating interest for its cell phone touch sensors. Carlstrom was supplanted as CEO in 2014 after police started an examination concerning insider exchanging. The organization’s then director said Carlstrom denied the charges. He ventured down formally as CEO in 2015. Wareby said the organization would survey Soderfjell’s position on the board once it had conversed with him and had more data on the assertions.