InterDigital Inc (IDCC)

[ziploc_1]

Current insider selling may be a curve ball. While insider selling is never a positive, it is usually legal. A flagrant exception to this occured in 1999 when there was a huge amount of insider selling while management but not the public had material information that the NOK "licence" depended almost completely upon a favorable settlement with ERICY to establish a royalty rate. Management, since then, has done two things to cover itself. They recently, albeit belatedly, released the details of the NOK deal and then they settled "favorably" with ERICY. Now they may have encouraged insider selling, even though good news is imminent, just to prove that they are selling on a regular basis, not only when they have kept material information to themselves. Also, they must keep selling as they award themselves more options because if they did not, they would own or control an unseemly percentage of IDCC stock.