Ica Retailers Convicted – Risk Losing Stores

The Svea Court of Appeal largely upheld the district court's decision, convicting several Ica retailers of insider trading after they profited millions using unpublished information during Ica's delisting from the stock exchange. Once the verdicts are finalized, the Ica Retailers' Association will decide on potential penalties for the convicted retailers. The harshest penalty could be the revocation of their right to operate an Ica store.

The district court's acquittals of two individuals were upheld by the Court of Appeal. The Court also confirmed the district court's verdict regarding seven individuals who were convicted in the district court, according to a press release from the Svea Court of Appeal.

Two individuals convicted in the district court were fully acquitted, and two others were acquitted of parts of the charges and received reduced sentences. Four of the accused were convicted of more extensive trading than in the district court. For three of these, the penalties were increased, with one receiving a conditional sentence with community service and two receiving prison sentences, the court stated.

Serious Insider Trading

Six individuals were convicted of serious insider trading, and four were convicted of insider trading. Others were convicted of aiding and abetting insider trading.

The five defendants sentenced to prison received sentences ranging from one to two years.

The central figures in the case are Ica retailers in Southern and Central Sweden. Once the verdicts are finalized, the Ica Retailers' Association's disciplinary committee will decide on potential penalties for the convicted retailers.

In a press release, Göran Blomberg, CEO of the Ica Retailers' Association, stated that it is "very serious" that six Ica retailers have been convicted of insider trading.

"It has been a long and demanding process that has affected the entire Ica and our reputation," he said.

Multiple Penalties

Ica's disciplinary committee can, in special cases, issue a reprimand, warning, or revoke membership in the Ica Retailers' Association. Membership is a requirement to operate an Ica store.

The issue arose when majority owners planned to delist Ica shares, which suddenly surged on the stock exchange in the fall of 2021. Since the increase occurred before the takeover bid was made public, suspicions arose that the bid had leaked in advance.