Foot Locker Executive Engaged in Insider Trading After Termination, According to SEC

By Jonathan Stempel

NEW YORK – A former executive of Foot Locker will pay $235,714 to resolve insider trading allegations brought by the U.S. Securities and Exchange Commission (SEC). This settlement stems from a trade he executed just nine days after his termination from the company.

Barry Siegel, who previously held the position of senior director of order planning management, entered into a civil agreement with the SEC after reportedly leveraging confidential information regarding sales and inventory to make trades before two of Foot Locker’s earnings announcements.

The SEC indicated that Siegel, a 56-year-old resident of Manhattan, profited unlawfully by short selling Foot Locker’s stock in anticipation of a decline in the retailer’s stock price ahead of its quarterly results on May 19 and August 23, 2023. In both instances, the company disclosed lower sales figures, increasing inventory levels, and a need for discounting, which resulted in stock price drops of more than 27% and 28%, respectively.

Siegel’s second short sale occurred on August 18, 2023, shortly after being laid off in a corporate restructuring. His tenure at Foot Locker spanned from 1998 to 2006 and again from 2011 until his recent dismissal.

While Siegel did not admit to any wrongdoing as part of the settlement, his attorney, Jeffrey Lichtman, stated, "We obviously looked to put this behind Barry as soon as it came up, and we worked with the SEC to get that done."

The settlement payment consists of $112,869 in disgorged profits, an additional $112,869 in civil penalties, and accrued interest.

Foot Locker has not been implicated in any wrongdoing and is in the process of relocating its headquarters to St. Petersburg, Florida.