A former Samsung manager, Suk-Joo Hwang, admitted at a trial that he was involved in leaking information regarding iPad components. This information was leaked before the iPad was officially launched.
According to Hwang, he had a meeting with James Fleishman, a Primary Global Research exec who has allegedly assisted in the exchange of insider information between other companies, employees, and traders. During the meeting, confidential information on Samsung-made LCD for the iPad was discussed. Hwang said at the trial, “One particular thing I remember vividly was that I talked about the shipment numbers of Apple, it was about iPad. This is in December 2009, before it came out with the tablet PC, they didn’t know the name then, so I talked to them about the tablet shipment estimates in that meeting.”
For the information in Hwang’s possession, he was offered $200 per hour. However, when he attempted to back off from the deal, his consultation fee was increased to $350 per hour.
Both parties were aware of the legal repercussions of the meeting. When Apple terminated its supply contract with the Korean tech giant, in fear of being implicated in the illegal activities, Hwang attempted to end his ties with James Fleishman.
Fleishman is pleading not guilty on two counts of conspiracy. If Fleishman is found guilty, the Primary Global Research exec will be facing 25 years of imprisonment. Hwang, on the other hand, has struck a deal with courts, which exempts him from prosecution. He resigned from Samsung back in June.
It looks like this will further intensify the legal battles between Apple and Samsung. The two industry giants are now suing and countersuing on various fronts.