They’re being dubbed the most odious of financial derivatives yet invented, and Conner Peripherals Inc is expected to be at the receiving end of a shareholder class action lawsuit on behalf of those that bought Conner shares between April 1992 and April 1993: the alleged offence is that the company failed to warn that its flagship high-end disk drives were obsolescent and that directors and others at the company sold the shares in large numbers near their peak; since such so-called insider sales have to be publically notified, in a sane world, shareholders could be expected to make a note of them and consider whether they should start making for the exits themselves rather than seeking to win back their trading losses in the courts.
