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Amaya CEO David Baazov Takes Leave of Absence Following Charges of Insider TradingPublished March 30, 2016 by Florin P
David Baazov steps out of the spotlight by taking leave of absence.
Amaya stocks took a heavy hit when David Baazov was charged with insider trading earlier this month. The CEO and chairman decided to take an indefinite, paid leave of absence to prepare an official response and defend himself against these allegations. The situation is very serious for the young entrepreneur, who faces five charges, all of them vigorously denied by him.
The Right Thing to Do
Baazov claimed that all these allegations are unfounded and stated that he is confident that the court will find him innocent of all the charges. Meanwhile, he expressed his commitment to doing the right thing, which is to protect the interests of Amaya and its stakeholders.
The decision to temporarily step down is supposed to reflect this attitude, but he plans to resume his activity immediately after proving his innocence. David Baazov still plans to acquire the company, after announcing his intention in early February. He was willing to pay $21 per share in cash at the moment and his announcement caused the stock to rise to as much as $21. In the wake of his indictment, the shares fell back to less than $15 and are unlikely to regain the losses in the near future.
AMF Spearheads the Offensive Against Baazov
The Autorite des marches financiers accused the CEO and chairman of Amaya and 13 other people of insider trading. Allegedly, all of them used the privileged access to information to make almost $1.5 million from stock trades.
With Baazov out of the picture, Divyesh Gadhia will assume the role of chairman, after acting as a director for more than five years. He is in charge of contacting companies that might be interested in the acquisition of Amaya. Mr. Baazov’s offer is still on the table, but the special committee will consider the offers made by third parties as well.