AutoZone CEO’s Explanation Rejected in Short-Swing Profit Suit

The chief executive officer of AutoZone Inc. failed to convince a federal judge that the profit he made from selling company stock out of a trust weren’t short-swing profits that he was required to disgorge.

William C. Rhodes III said that his 2022 stock sales were in-kind payments that were exempt from disgorgement under Securities and Exchange Commission Rule 16a-13. But Judge Jon P. McCalla, of the US District Court for the Western District of Tennessee, said Nov. 15, that Nosirrah Management LLC sufficiently pleaded that Rhodes obtained the stock and profited from it in violation of Rule 16(b) of ...