Vringo Offers Statement Related to Recent Director, Officer Transactions Regarding 10b5-1 Plans
Vringo, Inc. (NYSE: VRNG), a company engaged in the innovation, development and monetization of mobile technologies and intellectual property, today issued a statement regarding recent transactions by certain officers and directors pursuant to their pre-existing Rule 10b5-1 trading plans.
On January 28, 2013, portions of restricted stock units granted to certain Vringo officers and directors pursuant to the Company's 2012 Equity Incentive Plan vested. The vesting of these securities caused income tax liabilities for the officers and directors.
The proceeds from these stock sales are being used to pay the income tax associated with the vesting of the restricted stock units.
All the stock sales were effected pursuant to pre-existing trading plans established pursuant to Rule 10b5-1 and will be reported on Form 4 filings to be filed with the United States Securities and Exchange Commission.
As used here, the term "Rule 10b5-1" refers to an SEC rule under the Securities Exchange Act of 1934 that enables company officers and directors to enter into plans at times when such persons do not have any material, non-public information concerning the issuer. The plans were put in place by such persons to sell a pre-specified number of restricted stock units on the applicable vesting dates of the restricted stock units. The Company believes it is a common practice for insiders to sell shares on regular intervals to pay the income tax associated with the vesting of the restricted stock units.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.