ASIC drops DJs case: report

Corporate regulator fails to find anything untoward in director trading activities.

The Australian Securities and Investments Commission has ended an investigation into the share trading activities of two David Jones (DJS) directors after finding insufficient evidence to support suggestions of insider trading, according to The Australian.

The retailer was the subject of intense scrutiny after it was discovered that directors Steve Vamos and Leigh Clapham bought shares three days before the release of sales numbers that topped market expectations.

Shares in David Jones surged 15% in three days upon release of the numbers and this led some investors to query the decision of chairman Peter Mason to give the trades his blessing.

The ASIC investigation involved tests of the price sensitivity of the sales release, interviews with the key figures involved and reviews of correspondence, The Australian said.