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Short Take: Iomega slapped with class-action suit

A class-action suit has been filed against Zip-drive manufacturer Iomega, alleging that company officials practiced insider trading after disseminating misleading information to common stock holders. The suit claims that Iomega executives issued false information regarding the release date of the company's Jaz 2 drive to reverse declining sales, and that two senior officers of the company profited by selling off $11.5 million worth of personal stock after Iomega's stock surged.

A class-action suit has been filed against Zip-drive manufacturer Iomega, alleging that company officials practiced insider trading after disseminating misleading information to common stock holders. The suit claims that Iomega executives issued false information regarding the release date of the company's Jaz 2 drive to reverse declining sales, and that two senior officers of the company profited by selling off $11.5 million worth of personal stock after Iomega's stock surged.