Spotlight on a Solar Energy Company: Investor Relations Crisis

Abstract

Two days before Solar Global Industries, a publicly traded company, planned to announce its Q4 earnings report, its stock share price mysteriously plummets. Dealing with the immediate response is the first step; second is the suspicion of insider trading.

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Wednesday morning, 6 am, Maria’s cell phone rings. Without breaking stride in her morning run, she sees it’s from her coworker Vince, chief legal counsel to the company.

“Hey, Vince, what’s up?”

“Did you check the stock prices yet, Maria?” asked Vince.

“No, I was waiting until I cleared my head. I only got four hours of sleep last night. The meeting didn’t end till after 1 am.”

“Well the stock price is down almost 10% in overnight trading.”

“What? How could that happen? Oh no.”

“I don’t know what happened, but I scheduled a meeting in an hour. I think your whole PR team should be there. I’ll be there with all the legal staff. And of course, I’ve spoken with President Juarez and our CFO, Cohen. “

“Ok. Thanks. I’ll call the new college interns too, and we’ll all be there within the hour.”