Facts of misuse of insider information in transactions with PJSC MGKL shares established
Based on the findings of an investigation, the Bank of Russia has established facts of misuse of insider information by Alexey A. Lazutin and Linda L. Lazutina in transactions with the ordinary shares of Public joint stock company MGKL (PJSC MGKL) (hereinafter, the Shares).
On 21 February 2024, A. A. Lazutin, in his capacity as the director general of PJSC MGKL, signed its annual accounting (financial) statements for 2023 (hereinafter, the Statements) and thus received insider information about PJSC MGKL’s financial performance, in particular about an increase in its net profit in 2023. From 6 March 2024 to 26 March 2024, using this insider information, A. A. Lazutin conducted 478 transactions to purchase the Shares.
It should be noted that PJSC MGKL introduced a prohibitive period from 9 March 2024 to 10 April 2024 when no transactions with the Shares were allowed during the 30 calendar days before the publication of the Statements. Thus, A. A. Lazutin conducted transactions with the Shares based on the insider information during the prohibitive period as well.
On 8 April 2024, the Statements were published on the website of PJSC MGKL and on the website of Interfax’s Corporate Information Disclosure Center. The Statements contained PJSC MGKL’s insider information, the disclosure of which had a considerable impact on the price of the Shares.
Over the period beginning on 8 April 2024, following the release of the Statements, A. A. Lazutin performed a series of transactions to sell the Shares acquired earlier for a price exceeding the purchase price.
Furthermore, the investigation has revealed that A. A. Lazutin, having received PJSC MGKL’s insider information, transferred money to his spouse L. L. Lazutina which she then used to conduct transactions with the Shares.
L. L. Lazutina, who had not conducted transactions with the Shares until 10 January 2024, was actively purchasing the Shares from 5 March 2024 to 3 April 2024 and sold the Shares at a profit after the disclosure of the insider information.
The investigation has thus established that A. A. Lazutin and L. L. Lazutina used PJSC MGKL’s insider information illegally. Therefore, the Bank of Russia qualifies A. A. Lazutin’s actions as breaches of the bans stipulated in Clauses 1 and 3 of Part 1 of Article 6 of Federal Law No. 224-FZ1 and L. L. Lazutina’s actions as breaches of the ban stipulated in Clause 1 of Part 1 of Article 6 of Federal Law No.
A. A. Lazutin and L. L. Lazutina have been held administratively liable for the misuse of PJSC MGKL’s insider information. The Bank of Russia has sent binding orders to the above individuals to cease and desist from similar violations in the future.
Furthermore, the Bank of Russia has sent orders to professional securities market participants and exchanges to suspend any transactions on A. A. Lazutin’s and L. L. Lazutina’s brokerage accounts.
The Bank of Russia emphasises that an issuer’s insiders and persons related to them are not allowed to use insider information in transactions they conduct.
The reference to the Press Service is mandatory if you intend to use this material.