Court May Clear Telefonica Chairman In Trading Case

 

Spain's Supreme Court could acquit Telefonica SA Chairman Cesar Alierta in a high-profile insider trading case after setting a legal precedent that would mark the end of a long-running legal drama involving one of Spain's top businessmen.

Tuesday's court ruling over Spain's statute of limitations may apply in cases such as Alierta's, on grounds that the charges brought against him would have expired, according to a court spokesman.

Last year, a lower Spanish court ruled that Alierta enriched himself illegally while he was chairman of Spain's state-owned tobacco company, Tabacalera SA, during the late 1990s, but it acquitted him on grounds that the statute of limitations expired.

The ruling was appealed by Spain's anti-corruption prosecutor and taken to the country's High Court over the legal interpretation of the statute of limitations.

Alierta's lawyers also appealed the ruling, seeking that he is declared not guilty. Alierta has denied the charges in court.

A Telefonica spokesman declined to comment.