What is backdating options
have agreed to settle the case for 8 million, to be funded entirely by the company’s D&O insurance carriers.The settlement does not include the company’s co-founders, Henry Samuels … There is still a raft of unresolved options backdating cases out there, but at least one of the remaining options backdating related securities class action lawsuits has now been settled.Options backdating was a common way for corporate boards to pass more compensation onto managers and directors.Stock options allow people to buy corporate shares at a pre-arranged price. Lots of times the accounting was not done properly.”hide the maneuver from investors and accountants, so the illegality wasn’t a simple technical oversight.Continue Reading Broadcom Corporation, which previously settled its options backdating related derivative suit for 8 million, announced on December 29, 2009 (here) that it had settled the separate options backdating related securities class action lawsuit pending against the company and certain of its directors and officers in exchange for its agreement to pay 0.5 million. Continue Reading In a December 28, 2009 press release (here), the plaintiffs’ lawyers announced the settlement of the Comverse Technology options backdating-related derivative lawsuit.This derivative lawsuit settlement is separate from, but related to, the previously announced 5 million settlement of the Comverse Technology options backdating-related securities class action lawsuit (about which refer here). Continue Reading According to a December 17, 2009 press release from the lead plaintiff’s attorneys, the parties to the Comverse Technology options backdating related securities lawsuit have agreed to settle the case for 5 million dollars.The charge, originally from Japanese magazine Bungei Shunju, came from the first interview given by Greg Kelly, a former Nissan director who was an aide to former CEO and chairman Carlos Ghosn, since Kelly was arrested in 2018 and then freed from jail in December." data-reactid="17"CEO Hiroto Saikawa reportedly received a bump to a stock-based bonus when the company’s board rescheduled by a week the date it the shares were priced.
But that apparently is not enough for Roberts – he wants vengeance.Continue Reading For a period beginning in 2006, plaintiffs’ lawyers filed a wave of options backdating securities class action lawsuits.Almost all of these cases have now been resolved, although one case continues to grind through the appellate courts.The charge, originally from Japanese magazine Bungei Shunju, came from the first interview given by Greg Kelly, a former Nissan director who was an aide to former CEO and chairman Carlos Ghosn, since Kelly was arrested in 2018 and then freed from jail in December. In the context of all that has recently happened, this latest scandal might seem easy to ignore in comparative magnitude.But the charge bears the echoes of the stock options backdating scandal that started before the global economic collapse and extended beyond, making executives wealthier at the expense of shareholders.
Continue Reading Although some noteworthy settlements from the subprime-related securities class action litigation wave have started to accumulate (refer for example here), there are still some impressive settlements coming in from the prior scandal.