As of May 25th, 2018 the employment of Anders Holmgren as CEO and President of Cherry will no longer be valid, since the Board of Directors decided to terminate his contract with the company. The process of finding his successor is initiated and Gunnar Lind, member of the board and chairman of the Audit Committee will replace him as acting CEO until further notice.
According to Morten Klein, chairman of the board, Holmgren is no longer able to perform his duties, as he is facing accusations of serious insider trading. The Stockholm District Court detained him on Thursday, May 24th on suspicion of insider dealing. The Swedish Economic Crime Authority began an investigation on Tuesday, May 22nd, after which the prosecutor requested the court to detain him.
Nordic online gaming operator released a Q3 report in 2017 that showed negative profitability trends due to integration difficulties regarding the ComeOn acquisition. However, in April 2018, Cherry announced almost incredible financial results and forecasts, as well as beating analysts’ expectations. Grounds for suspicion rose when the company’s Q1 2018 figures jumped 26% reaching $76.55 million in just three months! Investigators found that the former CEO bought shares three weeks before the group announced its Q1 earnings, which helped in manipulating the exchange in the company’s own advantage.
Founded in 1963, the concern became one of the leading providers of entertainment in gaming and media. Thanks to its innovative and fast-growing operations, Cherry AB is active in five different business branches: online gaming, development, marketing, technology and restaurant casino. Strategic acquisitions have helped the company to grow organically, allowing it to employ almost 1,400 people and generate around 6,700 shareholders.