Breaking Update: Court Unseals Potentially Devastating Testimony -- Romney Said Stocks Sold at 1/10th of Eventual Value Was 'Good Price'
Editor's Update: The Boston Globe reports: "Mitt Romney testified under oath in 1991 that the ex-wife of Staples founder Tom Stemberg got a fair deal in the couple’s 1988 divorce, even though the company shares Maureen Sullivan Stemberg received were valued at a tenth of Staples’ stock price on the day of its initial public offering only a year later. At the time the Stembergs split, Romney suggested, there was little indication that Staples’ value would soon skyrocket. Romney’s testimony in a post-divorce lawsuit brought in 1990 by Sullivan Stemberg was unsealed on Thursday in Norfolk Probate and Family Court at the Globe’s request. Sullivan Stemberg sued unsuccessfully to amend the couple’s financial agreement after Staples went public in 1989 and closed its first day of trading at $22.50 per share, 10 times the value she had received."
According to the Globe, Sullivan Stemberg sold 175,000 shares of Staples stock at $2.25 per share, and sold 80,000 shares at $2.48 a few months later. “In my opinion, that’s a good price to sell the securities at,” Romney testified. "But on April 28, 1989, barely a year after Sullivan Stemberg sold more than half of her shares on the premise that they were worth less than $2.50 apiece, the company made its initial public offering at $19 per share and ended its first day at $22.50," the Globe reports.