David Blecken
Oct 29, 2018

Former ADK staffer investigated for insider trading: report

A former executive of the company is said to have used information on Bain Capital's takeover bid to facilitate a share trade.

The location of ADK's Tokyo office (Shutterstock)
The location of ADK's Tokyo office (Shutterstock)

A former employee of ADK is under investigation for insider trading linked to Bain Capital’s acquisition bid last year, according to a report by a Japanese publication.

The Mainichi newspaper reported that the executive is alleged to have leaked information on Bain’s bid to an acquaintance before the deal became public. The acquaintance reportedly used the information to profit from selling ADK shares.

The report did not include names.

The move would be in breach of the Financial Instruments and Exchange Act. ADK did not immediately respond to a request for comment on the proceedings.

ADK completed its sale to Bain Capital in early December last year. In March, the company delisted from the Tokyo Stock Exchange, and named Bain Capital MD David Gross-Loh as a director.

ADK is currently in the process of restructuring, which is understood to have resulted in a number of staff departures at the mid- to senior level. ADK and Bain have yet to define a clear strategy to transform Japan’s third-largest advertising agency, but have talked about the importance of focusing on digital and of developing ADK’s entertainment business.

Campaign Japan

Related Articles

Just Published

3 hours ago

'Laundrette': BBH's CMO on the ad that built the agency

Bartle Bogle Hegarty's global CMO reflects on the significance of the 1985 Levi's ad 'Laundrette', following the death of its star, Nick Kamen, this week.

3 hours ago

Neil Christie to leave Wieden+Kennedy

Christie had been supporting the agency in Brazil, China, India and Japan as director of growth markets since 2019.

4 hours ago

Adidas and Nike sales plummet following boycotts

Both brands reported plummeting sales on China’s e-commerce channel, Tmall, in April.

4 hours ago

Software giant SAS launches biggest brand campaign ...

The analytics company is building awareness as competition heats up.