Two board members, Anna Bergius and Claes Ruthberg, have resigned from the Cherry AB board of directors as the probe into allegations of insider trading against former CEO Anders Holmgren deepens.
In a statement, Cherry said: “Anna Bergius and Claes Ruthberg have notified the chairman, Morten Klein, of their decision to resign from their assignments as members of the board of directors of Cherry, effective immediately.”
Cherry said the pair’s decision was based on receiving a notice from the Swedish Economic Crime Authority, informing them about the authority’s suspicion of crime committed by them in connection with the investigation of alleged insider crime carried out by the former CEO Holmgren, which began in May.
Both board members concluded that their decision is the best alternative for the company given the current situation, Cherry said.
Following the resignations, the Cherry board is down to four members. Board chairman Klein has been in contact with the Nomination Committee to initiate the search for additional board members.
Cherry fired Holmgren soon after accusations of severe insider trading emerged earlier this year, which saw the Cherry offices raided and the then chief executive arrested and detained following an investigation by the Swedish Economic Crime Authority, citing allegations of “severe” insider trading.