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Dali Technology and Advanced Optoelectronics Under Investigation for Insider Trading, 10 Individuals Questioned, 2 Employees Granted Bail

Dali Technology and Advanced Optoelectronics Under Investigation for Insider Trading, 10 Individuals Questioned, 2 Employees Granted Bail

Authorities are investigating insider trading involving publicly listed Dali Technology and OTC company Advanced Optoelectronics, having brought in 9 suspects and 1 witness for questioning on the 25th. Following this, it was determined that an employee named Yao from Dali Technology and a female employee named Yang from Advanced Optoelectronics had violated the Securities and Exchange Act and were granted bail of NT$500,000 and NT$150,000, respectively.

According to the Taichung District Prosecutors Office, the case revolves around suspected violations of insider trading laws by individuals who traded stocks during prohibited periods after becoming privy to significant information released by both companies in 2021.

The prosecutor's office noted that the Special Economic Crime Prevention Unit conducted searches in 15 locations across Taichung and Taipei on the 25th, summoning 9 suspects and 1 witness for explanations and determining that 4 had suspicions of insider trading. Both companies have stated that the investigations did not affect their business or financial standing.

Market sources suggest that the case stems from a lawsuit filed by Dali Technology against Advanced Optoelectronics in 2021 regarding copyright infringement, which culminated in a settlement after nearly 10 years of litigation, with Dali Technology investing approximately NT$598 million to acquire a 15.2% stake through a private placement.