Acer suffers another blow as insider trading allegations surface

Embattled PC maker Acer has suffered yet another blow, with Taiwanese authorities launching an investigation into alleged insider trading at the company.

According to reports published by Bloomberg, Taiwan’s market regulator, the Financial Supervisory Commission, is alleging “irregularities” in the days before the company released its disastrous third quarter results last year.

As SmartCompany reported at the time, the company’s revenues for the third-quarter of 2013 fell 11.8% year-on-year to $US3.11 billion, resulting in an operating loss of $US86.6 million.

The Taiwanese computer giant, which trades under the Acer, Gateway, Packard Bell, Founder, iGware and ETen brands, also booked a $US335.1 million writedown, for a total after-tax loss of $US442.19 million.

Acer’s then chief executive, JT Wang, and president, Jim Wong, both stood aside after the delivering the results. Neither Wang nor Wong has been among those named in the latest allegations.

According to Bloomberg, the New Taipei District Prosecutors Office is investigating the matter, having seized documents from the offices of the tech giant.

In a statement, Acer says it is fully cooperating with the investigation.

“Acer has always operated honestly as a law-abiding company, and requires its employees to follow laws and regulations.

“Today, authorities took from the Acer headquarters in Xizhi, Taiwan, the related documents and information. Acer is fully cooperative with the investigation procedures and hopes to clarify the matter as soon as possible.”

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