 |
Sarbanes-Oxley News & Developments
Defending Against Backdating SuitsLawsuits related to options backdating are on the rise, and directors and officers should consider both defense and insurance strategies as investigations turn into restatements.
> > Some shareholder lawsuits linked to backdating stock option grants are more straightforward than others. Consider the headline-grabbing case of Kobi Alexander, the former Comverse Technology CEO. The Wall Street Journal reported that Alexander allegedly fled the country to avoid a backdating investigation involving $57 million in purportedly ill-gotten gains, and subsequently became a fugitive from the FBI.
Not all backdating cases offer that level of drama, but they may be equally difficult to sort out.
Source: CFO
Published:2006-08-17
|
|
