Freenet bosses to be tried for insider dealing

The two main figures at internet and mobile phone service provider Freenet could be jailed for up to five years, after Hamburg's district court agreed to try them for insider dealing.

Freenet bosses to be tried for insider dealing
Spoerr (right) and Krieger Photo:DPA

Freenet CEO Eckhard Spoerr and chief financial officer of the company Axel Krieger are accused of breaking market rules by trading in shares using insider information, a court spokeswoman has confirmed.

Earlier media investigations into the case suggested that Spoerr and Krieger made a €1 million each through questionable deals in 2004.

But a Freenet spokeswoman told The Financial Times Deutschland, “The allegations are unfounded and we will defend ourselves against them.”

The paper says Spoerr is currently in a power struggle with major shareholders mobile phone firm Drillisch and United Internet about the future direction of Freenet.

They submitted a vote of confidence in Spoerr at last Friday’s shareholders’ meeting, which he won.

The court case against Spoerr and Krieger will not start until next year due to Krieger’s busy schedule.