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How ethical are Gateway's Legal Compliance practices?
Title: Insider trading, wasteful spending on executive severances.
Consumer Interest: Legal Compliance (change)
"In November 2002, Gateway announced that for almost two years it was under investigation by the Securities and Exchange Commission (SEC). The investigation began the same time the first of six class-action lawsuit were filed against the company. The lawsuits alleged that the company's board of directors and managers included insider trading and wasteful spending on executive severance pay. Jeff Weitzen, who served as CEO in 2000, left the company along with chief financial officer John Todd. Lawsuits filed by shareholders last year asked the company to sue the two for damages. The lawsuits were eventually combined and settled in 2002 for $10.5 million. Through the settlement Gateway admitted no wrongdoing."
Quoting CoopAmerica http://www.coopamerica.org/programs/responsibleshopper/http://www.coopamerica.org/programs/responsibleshopper/company.cfm?id=230