Stock option backdating suits
It has been such a while since a new options backdating securities lawsuit has appeared that it was with some surprise I noted the new case that has been filed against Teletech Holdings and certain of its directors and officers. According to the plaintiffs’ counsel’s January 25, 2008 press release (), the lawsuit, filed in the Southern District of New York, relates to the company’s Spotlight on Stock Options Backdating. Note: This page has been archived and is no longer being updated. It may include obsolete or out-of-date information. Enforcement Actions Related to Options Backdating; Commission Speeches and Testimony Related to Options Backdating; Commission Staff Speeches, Testimony and Letters Related to Options What is the benefit of backdating ESO grants? ESOs are usually granted at-the-money, i.e., the exercise price of the options is set to equal the market price of the underlying stock on the grant date. Because the option value is higher if the exercise price is lower, executives prefer to be granted options when the stock price is at its lowest Options Backdating: The process of granting an option that is dated prior to the date that the company granted that option. In this way, the exercise price of the granted option can be set at a Options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which the underlying stock price was lower. This is a way of repricing options to make them valuable or more valuable when the option "strike price" (the fixed price at which the owner of the option can purchase stock) is fixed to the stock price at the date Stock Option Backdating Litigation. In 2006, the Wall Street Journal reported that three companies appeared to have “backdated” stock option grants to their senior executives, pretending that the options had been awarded when the stock price was at its lowest price of the quarter, or even year. These suits sought to force the executives
7 Oct 2007 Stock options allow employees to purchase a particular number of year, 20 suits related to options backdating were filed against companies
Stock Option Backdating Litigation. In 2006, the Wall Street Journal reported that three companies appeared to have “backdated” stock option grants to their senior executives, pretending that the options had been awarded when the stock price was at its lowest price of the quarter, or even year. These suits sought to force the executives Derivative Suits . With shareholder derivative suits clearly established as the most frequently used judicial recourse for backdating cases in the U.S., they may be brought against both directors for a breach of their fiduciary duty, as well as against any grantee of backdated stock options for unjust enrichment. Spotlight on Stock Options Backdating. Note: This page has been archived and is no longer being updated. It may include obsolete or out-of-date information. Enforcement Actions Related to Options Backdating; Commission Speeches and Testimony Related to Options Backdating; Commission Staff Speeches, Testimony and Letters Related to Options UPDATE 1-Brocade settles stock option backdating lawsuit The suit had also named certain former directors and officers of the company. but only if a company takes a charge for the value of The suit accused ACS of keeping inadequate internal controls regarding its stock option compensation and failing to maintain accurate company records during the options backdating period of 1994-2005. Western Digital Corp. disclosed in a filing Monday with the U.S. Securities and Exchange Commission that it faces a number of shareholder lawsuits brought in the wake of its disclosure of stock
shareholder suit filed against its executives claimed that Engineered Support depends on the number of backdated options and spread between the stock
prescient about the prospects of the private civil suits concerning allegedly improper stock option backdating. As these civil cases have made their way through 26 Oct 2006 also Analog Devices Seeks Dismissal of Suit Over Stock-Option Backdating, 22 No. 4. ANDREWS CORP. OFF. & DIRECTORS LIAB. LITIG. Thousands of U.S. companies appear to have secretly backdated stock options. This Article analyzes three forms of secret option backdating: (1) the backdating 11 Nov 2010 The S.E.C. and the Justice Department investigated more than 100 companies over whether the dates of stock-options awards had been 6 May 2010 In the third largest options backdating-related securities class action to settle the claims against all defendants in the options-related securities suit committee's investigation of the company's stock option practices, the
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The suit accused ACS of keeping inadequate internal controls regarding its stock option compensation and failing to maintain accurate company records during the options backdating period of 1994-2005.
28 Jul 2006 There is no statute that explicitly outlaws backdating stock-option grants, while the SEC filed a civil suit against the same two and the CFO.
11 Feb 2010 Backdating is the practice of retroactively changing the date of when employee stock options are granted to a time when the purchase price 27 Jun 2014 PDF | The illegal backdating of stock options has been studied by Brocade settled the civil suit against it by agreeing to pay a seven-million. Option grant backdating involves issuing (in-the-money) stock options to an whereas in the very few class-action suits settled to date the median damages 4 Feb 2014 Murray Edwards, backdated stock options for Ensign's shares over a period and Calgary Flames part-owner Murray Edwards named in suit.
It has been such a while since a new options backdating securities lawsuit has appeared that it was with some surprise I noted the new case that has been filed against Teletech Holdings and certain of its directors and officers. According to the plaintiffs’ counsel’s January 25, 2008 press release (), the lawsuit, filed in the Southern District of New York, relates to the company’s Spotlight on Stock Options Backdating. Note: This page has been archived and is no longer being updated. It may include obsolete or out-of-date information. Enforcement Actions Related to Options Backdating; Commission Speeches and Testimony Related to Options Backdating; Commission Staff Speeches, Testimony and Letters Related to Options What is the benefit of backdating ESO grants? ESOs are usually granted at-the-money, i.e., the exercise price of the options is set to equal the market price of the underlying stock on the grant date. Because the option value is higher if the exercise price is lower, executives prefer to be granted options when the stock price is at its lowest