The funny thing is, it was never said it came from the CEO, or directly from the Company for that matter - the large shareholder got hints from "somewhere". What does that mean, I don't know. It's probaly likely that this individual is selling into the hype.
All I can say is that, shareholders who have sold out in the past have the opportunity to buy again based on pure speculation, which is extremely common in penny land. If they don't and lose out, they can probably scream all they want, but I really doubt the SEC has time for it (if you follow the news, there are approximately 2,000 big exchange companies that backdated stock options - how many has the SEC gotten too - I believe somewhere in the low 100s).