With all of the media attention focused on the first options backdating criminal complaint, filed July 20, 2006 against two former officials of Brocade Communications Systems, and with published reports suggesting (for example in the July 21, 2006 front page article of the Wall Street Journal , subscription required) that prosecutors are investigating “over
Options Backdating
Counting the Options Backdating Lawsuits
By Kevin LaCroix on
Posted in Options Backdating
The information in this post was last updated on September 10, 2008
The purpose of this blog post is to track options backdating related litigation. All of the companies that have been sued — and of which the The D & O Diary is aware — have been listed below. The D & O…
New Options Backdating Study Implicates Thousands of Companies
By Kevin LaCroix on
Posted in Options Backdating
Erik Lie, the University of Iowa Business School professor whose research is widely credited with unlocking the emerging options backdating scandal, has published a new research paper concluding that practice of options backdating was far more widespread than current media reports suggest. According to Lie’s July 14, 2006 paper, written with Associate…
Options Backdating Securities Litigation Update (and other Notes and Comments)
By Kevin LaCroix on
Posted in D & O Insurance, Options Backdating
Options Backdating Securities Litigation: On June 29, 2006, a putative securities fraud class action was initiated against KLA-Tencor. This brings the number the number of companies sued in securities fraud class action lawsuits based on options timing allegations to eight. Background on the other seven companies previously named can be found on prior D…
Updates and Notes
By Kevin LaCroix on
Options Backdating Litigation Update: On June 19, 2006, the Kaplan Fox & Kilsheimer law firm initiated a new securities fraud class action lawsuit against Brooks Automation and several of its directors and officers, based on options backdating allegations. With the addition of the Brooks Automation lawsuit, the number of companies named in securities fraud class…
Options Backdating and D & O Insurance (and Other Notes from Around the Web)
By Kevin LaCroix on
Posted in D & O Insurance, Options Backdating
D & O insurers, concerned about lawsuits that have already have been filed and troubled by the possibility of an unknown number of lawsuits yet to come, have begun to respond to the options backdating investigation. On June 20, 2006, the Wall Street Journal (subscription required) carried an article entitled "Options Timing Raises Concern…
Another Variant on Options Backdating: Hiring-Related Stock Option Grants
By Kevin LaCroix on
Posted in Options Backdating
The recent media coverage surrounding stock option practices primarily has been focused on options backdating, and to a lesser extent on options springloading. A new wave of media attention has drawn scrutiny of another options compensation practice – the allegedly improper use of stock options grants in connection with hiring and recruiting of…
“Dozens” of Options Backdating Lawsuits Coming?
By Kevin LaCroix on
Posted in Options Backdating
Earlier this week several publications carried reports that pension funds in the United States, Europe and Australia had retained the Lerach Coughlin law firm to sue “dozens of companies” over the timing of stock options grants to their top executives. A June 13, 2006 article in the San Jose Mercury quoted Lerach Coughlin partner Darren…
First Options Backdating; Now Options Springloading?
By Kevin LaCroix on
Posted in Options Backdating
In the last couple of months, there has been widespread media coverage (including several prior posts on The D & O Diary) discussing the growing investigation into options backdating. New allegations have surfaced that may evidence options “springloading.”
Options backdating involves retroactively dating the grant and exercise price of an options issue to a…
Securities Litigation Update on the Options Backdating Probe
By Kevin LaCroix on
On May 30, 2006, American Tower Corporation became the fourth company to be named in a securities class action lawsuit connected with the options backdating probe. (As noted in this prior post on The D & O Diary, the three companies previously named in securities class action lawsuits related to options backdating are Vitesse…