Former AutoZone CEO Escapes Investor’s Short Swing Profit Suit

AutoZone Inc.‘s former CEO defeated a shareholder’s lawsuit alleging the over $1 million he earned off of selling stock out of a trust was short-swing profits that should be turned over.

Judge Jon P. McCalla of the US District Court for the Western District of Tennessee ultimately ruled in favor of William C. Rhodes III, saying his sales were exempt from a US securities law provision that corporate insiders are liable to their company for any profits collected off buying and selling its stock within a six-month period of each other. McCalla said Rhodes’ 2022 stock acquisitions were exempted ...