Shareholders of GoPro were angry at Nicholas Woodman, GoPro's CEO after breaking a lock-up agreement causing shares to decline 7 percent Thurs.
After a very successful public offering, Nicholas Woodman, CEO of GoPro, a fast emerging company that makes high-end cameras and wearable cameras used by extreme sports users, along with wife Jill Woodman decided to donate $5.8 million to Woodman's own charity.
The donation supposedly was a good thing, except that GoPro's shareholders didn't see it that way and attested that it was a breach of contract.
JPMorgan, the company that handled GoPro's initial public offering and distribution of securities allowed the charity named Jill + Nicholas Foundation to ditch a rule that prevents early investors and company insiders from selling their shares immediately after an initial public offering, according to a statement released by GoPro.
JPMorgan reportedly let Woodman disregard the lock-up agreement and sell their shares beginning today, when the company's shareholders are not supposed to sell their stock until 180 days after the GoPro's IPO last June.
GoPro did not comment about the CEO's donation to charity
What The Jill & Nicholas Foundation actually do also remain undisclosed, as details about its mission will reportedly be announced "at a later date."
The Woodmans argued that the donation was from their own personal pockets.
However, several investors and financial analysts also questioned the transaction and Woodman's motive for doing so.
"It seems like they were looking for a way to get liquid through a back door and do it through the foundation," according to Yahoo Finance Senior Editor Mike Santoli.
"But, look, I have a hard time summoning a lot of tears for the people who bought in this last little spurt higher," Santoli added.
The Woodmans would also reportedly be spending less on tax because of the donation, according to Kathleen Smith, exchange-traded fund manager at investmenr firm Renaissance Capital.
Shares of the extreme camera manufacturer declined 9.4 percent to $83.14 today.
