Insider Trading Annouced With Carter's Stock, Largest Shareholder Exited Wednesday

Steven Slawson was indicted in an insider trading conspiracy regarding Carter's CRI stock, according to Dow Jones.

This is not the first time Slawson has run into trouble with the law.

The SEC in 2007 filed charges against Slawson and his fund, Titan Capital, for 26 unregistered securities offerings (PIPEs).

Related: Carter's Shares Drop On Hedge Fund Activity

Sally Quillian Yates, United States attorney, commented, "The charges against Slawson reflect that for over five years, Slawson obtained a sneak preview of Carter's not-yet-released quarterly and annual financial results and other confidential internal information.

"He is charged with buying and selling tens of thousands of shares of Carter's stock ahead of the news to make illegal profits in the stock market."

Slawson pulled his information from the company's previous head of investor relations and vice president of operations, according to Dow Jones.

This round of charges against Slawson include 25 counts of securities fraud and nine counts of wire fraud.

Interestingly, Tiger Global filed a 13G Wednesday showing the fund has liquidated its entire stake. Tiger was the largest shareholder in the company. It is unknown if these events are related.

Shares of Carter's were last trading up 0.63 percent to $72.33.