Because we don't know what happened and 'gross incompetence' is an unfair allegation. Do you think your company could withstand an attack from a nation state w

Because we don't know what happened and 'gross incompetence' is an unfair allegation. Do you think your company could withstand an attack from a nation state with unlimited powers? Doubtful. Even if the investors did know about the security breach, it wouldn't be illegal for them to trade on that information so long as it wasn't 'insider' aka they were made aware by the company itself. We don't know what happened, but the issue is not with trading shenanigans, the issue is the materiality of the security breach and who did it, how and why etc..