Dean Foods (DF) Subpoenaed in Insider Trading Case
Shares of the Dean Foods (DF) were off -0.52 or -2.96 percent to $17.03 per share in after hours trading yesterday afternoon , after news that the company was recently served with a subpoena from Preet Bharara, the United States Attorney for Manhattan. The subpoena was for documents related to alleged insider trading by sports bettor William Walters and golfer Phil Mickelson, who allegedly received insider trading information.
Dean Foods stock closed down -0.03 or -0.17 percent to $17.55 per share in Mondayâ s regular trading session.
Founded in 1925, Dallas, Texas based Dean Foods, is a domestic food and beverage company specializing in the processing and distribution of milk and other dairy products. Dean Foods product line includes cultured dairy products, liquid milk, ice cream, creamers, and other dairy products. Also, Dean Foods produces and distributes bottled water, juices and tea. Dean Foodsâ brands include, Alta Dena, Oak Farms, Land o Lakes, Meadow Gold and Lehigh Valley Dairy Farms among others. The investigation by the U.S. Attorney for Manhattan involves both Dean Foods and Clorox Co. (CLX
). Investigators are trying to determine if both Mr. Walters and Mr. Mickelson had inside information on Dean Foodâ s planned announcement of the spinoff of the companyâ s White Wave Food subsidiary in August of 2012. Both Walters and Mickelson placed trades in Dean Foods before the company formally announced the spinoff on August 8th of 2012. After the announcement, Dean Foods stock soared +41 percent generating more than $15 million in profit for Walters and almost $1 million for Mickelson. The investigation has drawn media attention because Phil Mickelson is a three time winner of the Masters Golf tournament and William Walters is considered to be one of the most successful sports bettors in the world. The investigation is also probing Waltersâ trading in Clorox stock. Walters made some trades in the stock in the same time frame that Carl Icahn began an unsolicited takeover bid for the company. Investigators suspect Mr. Icahn may have provided Walters with details of his unsuccessful takeover attempt. It is still unclear which documents from Dean Foods were requested. A spokesman for Dean Foods, Jamaison Schuler, did not comment on whether there had been any requests by federal authorities for documents, but stated, â
Published on Jun 24, 2014
By Jay Hawk