By: Staff reports Newsroom Members Bought Stock Prior to Central Going on the Block
The Arizona Republic has suspended four supervisors without pay
and reprimanded six staff members for buying stock in the paper's
parent company, Central Newspapers Inc. (CNI), based on rumors
preceding Central's announced sale, The Associated Press reports.
On Friday, the Republic published a letter stating that 10
newsroom staff members acted unethically when they purchased CNI stock
through their company's 401(k) accounts.
'This was in violation of our newsroom ethics policy, which say
Republic journalists should never attempt to gain from
information that the general public does not have access to,' said Pam
Johnson, the Republic's senior vice president of news and
executive editor, in her letter.
Johnson said the paper has determined the 10 staff members acted on
gossip, not 'inside information,' as defined by securities regulators.
There were no legal implications.
Central Newspapers stock rose as much as 72% when it announced it was
up for sale on June 8.
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