Directors resign at Cherry

28 August 2018

Cherry AB has instigated a search for additional board members after Anna Bergius and Claes Ruthberg tendered their resignations amid the probe currently taking place into alleged insider trading conducted by former CEO, Anders Holmgren.

Bergius (pictured) and Ruthberg notified Cherry chairman, Morten Klein, of their decision to resign from their assignments as members of the Board of Directors, effective immediately.

Cherry said in a statement: “Their decision was based on receiving a notice from the Swedish Economic Crime Authority, informing the two board members about the authority’s suspicion of crime committed by them in connection with the investigation that was initiated in May 2018 of alleged insider crime carried out by the former CEO, Anders Holmgren.

“Both board members concluded that their decision is the best alternative for the company given the current situation.”

Holmgren had been arrested on suspicion of insider trading.

The Economic Crime Authority carried out a raid of Cherry’s offices on May 22 and the arrest took place shortly after. Gunnar Lind, chairman of the audit committee at Cherry, has taken on the role of acting president and chief executive while the investigation continues.

Following the resignations of Bergius and Ruthberg, the Cherry Board of Directors consists of four members. According to the company’s Articles of Association, the board of directors must comprise at least three and at most nine members. Cherry said Klein has been in contact with the Nomination Committee to initiate a search for additional board members.

Earlier this month, Cherry said it was set to conclude its search for a new permanent CEO by the end of August.

Klein, speaking on an earnings call for the company’s second-quarter financial results, hailed the leadership of Lind in his acting capacity.