Stefan Lundborg, a non-executive director at Kindred Group, has tendered a resignation with immediate effect.
The Board at Kindred Group noted on 4 December that one of its non-executive directors, Stefan Lundborg, has tendered a resignation. The resignation came into force with immediate effect.
The resignation of Stefan Lundborg was unavoidable, considering the investigation against him by the Swedish Economic Crime Authority (SECA). The authority implicated Lundborg in insider crime. Lundborg has refused to provide any further details from his side regarding the matter. However, he is reported to be cooperating fully with SECA and the Swedish public prosecutor. Kindred Group is also doing everything to assist the authorities in their investigation.
Why has Lundborg Tendered a Resignation at Kindred Group?
Lundborg was appointed as Unibet’s CEO, later renamed Kindred Group, in 2008 and served in that position until 2010. He then became the board’s chairman and remained in that position until 2020.
During his tenure at Kindred Group, Lundborg oversaw the company’s growth and expansion. Under his leadership, the company’s revenue increased from €75 million to over €600. Lundborg was also credited with implementing a customer-centric strategy. The new approach focused on providing a personalised experience for the company’s online gambling platform users.
The recent tendered resignation from his position followed allegations of Lundborg being investigated for insider trading. Lundborg was accused of using his position to profit from the purchase of shares in the company. It is alleged he did this with the knowledge of a pending acquisition that would drive up the share price.
The Swedish Economic Crime Authority subsequently launched an investigation against Lundborg, and he risks various charges. So far, Lundborg has denied any wrongdoing. He further maintains that he did not have access to any inside information that would have influenced his decision. However, this is overshadowed by his willingness to tender a resignation.
With the case expected to unravel over the next few months, Lundborg’s fall from grace has been seen as a significant blow to his reputation and to the reputation of Kindred Group, which has undertaken to distance itself from the scandal. This case serves as a cautionary tale about the importance of ethical conduct and transparency in business, particularly in the highly regulated and scrutinised field of online gambling.
About Kindred Group
Kindred Group, formerly Unibet Group, is a leading online gambling company that operates in various countries worldwide. The company was founded in 1997 and has since become one of the largest online gambling operators, with over 30 million customers worldwide.
The company offers various online gambling services, including sports betting, casino games, poker, and bingo. Kindred Group operates through several brands, including Unibet, Maria Casino, Bingo.com, and iGame. The company’s primary markets are Europe, Australia, and the United States, where it operates under local licences.
In recent years, Kindred Group has focused on expanding its operations in the United States, where online gambling has become legal in several states. The company has partnered with local casinos and sports teams to offer customers online sports betting and casino games in those states.
Kindred Group has also been committed to responsible gambling and has implemented various measures to promote responsible wagering and prevent problem gambling. The company offers self-exclusion options, deposit limits, and time-out options for customers at risk of developing a gambling problem.
Kindred Group has consistently delivered strong results regarding financial performance, with revenue and profits increasing yearly. The company has also been active in acquisitions, acquiring several smaller online gambling companies to expand its operations and customer base.
Overall, Kindred Group is a well-established and respected online gambling company with a strong track record of delivering value to its shareholders while promoting responsible gambling practices. With its continued focus on expanding its operations in the United States and other key markets, the company is well-positioned for future growth and success.
Insider Trading Laws in Sweden
Insider trading refers to buying or selling securities based on material, non-public information. In Sweden, insider trading is illegal and is governed by the Securities Market Act (SFS 2007:528).
According to the Securities Market Act, anyone who has inside information about a company is prohibited from trading in securities in that company. Inside information is defined as information that has not been made public and is likely to impact a company’s share price significantly. The prohibition applies to anyone accessing such information, including employees, consultants, and company directors.
Insider trading is punishable by imprisonment for a term not exceeding two years or a fine. In addition, individuals engaged in insider trading may be subject to civil liability for any losses investors may suffer due to their actions.
The Swedish Financial Supervisory Authority (FSA) enforces insider trading laws in Sweden. The FSA can investigate suspected insider trading and may impose sanctions on individuals who have violated the law, including fines and public warnings.
To ensure compliance with insider trading laws, companies in Sweden must establish insider lists that record the names of individuals who have access to inside information. These lists must be updated regularly and submitted to the FSA upon request. Companies must also have policies and procedures in place to prevent insider trading and to provide training to their employees on the importance of complying with insider trading laws.
Ultimately, insider trading is illegal in Sweden, and individuals who engage in such activities often face criminal and civil liability. To prevent insider trading, companies must maintain insider lists and have policies and procedures to prevent such activity. The FSA is responsible for enforcing insider trading laws in Sweden and may impose sanctions on individuals who violate these laws
