Stock Options BackdatingThis site is sponsored by the law firm of Alexander Hawes, LLP. The purpose of "Stock Options Backdating" is to keep the public informed about the numerous scandals involving stock options and backdatings.tag:blogger.com,1999:blog-347631152006-09-21T20:30:09ZBlogger
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trueK.T.2006-09-21T13:30:09-07:002006-09-21T20:30:09Z2006-09-21T20:30:09Ztag:blogger.com,1999:blog-34763115.post-115887060972113735Family Dollar Execs Sued over BackdatingFamily Dollar Execs Sued over Backdating: "Ten Family Dollar officials and directors, including its chief financial officer, have been sued by a shareholder, accusing them of improperly earning millions of dollars from exercising backdated stock options over six years, according to The Charlotte Observer." [CFO.com]falseK.T.2006-09-21T13:29:28-07:002006-09-21T20:29:28Z2006-09-21T20:29:28Ztag:blogger.com,1999:blog-34763115.post-115887056845091896Neowin.net - Activision sued over stock option grant practicesNeowin.net - Activision sued over stock option grant practices: "An Activision shareholder has sued the video game maker over its stock option grant practices alleging improprieties in the company's issuance of stock options and targeting both former and current executives in the latest backdating scandal. The lawsuit alleges that Activision backdated its stock options to the financial benefit offalseK.T.2006-09-21T13:28:29-07:002006-09-21T20:28:29Z2006-09-21T20:28:29Ztag:blogger.com,1999:blog-34763115.post-115887050975836437Daily Kos: The Options Back Dating Scandal: Overview and ExplanationDaily Kos: The Options Back Dating Scandal: Overview and Explanation: "A new financial scandal has emerged over the last year or so. It's the options back dating scandal. By altering the date when a company officially granted an option, an executive could increase the amount of his actual pay and lower his tax liability on his executive compensation. This week, SEC head Christopher CoxfalseK.T.2006-09-21T13:27:46-07:002006-09-21T20:27:46Z2006-09-21T20:27:46Ztag:blogger.com,1999:blog-34763115.post-115887046652490385Plugged In: Why options backdating is a big deal - Jul. 26, 2006Plugged In: Why options backdating is a big deal - Jul. 26, 2006: "For the past several weeks I've been asking experts (to be precise: lawyers) if they think the options backdating scandal is a big deal with major ramifications, a medium-sized brouhaha that will fade after the egregious abusers have been punished, or a tempest in a teapot we'll have forgotten by Christmas.
Wishful thinking aside,falseK.T.2006-09-20T16:03:05-07:002006-09-20T23:03:05Z2006-09-20T23:03:05Ztag:blogger.com,1999:blog-34763115.post-115879338559268769ICANNWatch | VeriSign receives subpoena relating to stock option backdatingICANNWatch | VeriSign receives subpoena relating to stock option backdating: "GeorgeK writes 'VeriSign has reported that they are cooperating with a grand jury subpoena and a SEC inquiry into their historical stock option grants. More can be found here. Backdating of options is essentially a fraud against existing shareholders, as noted in the press or simply searching Google for 'backdatingfalseK.T.2006-09-20T16:02:09-07:002006-09-20T23:02:09Z2006-09-20T23:02:09Ztag:blogger.com,1999:blog-34763115.post-115879332958679310Scandal over executive stock options hits techs hard - May. 24, 2006Scandal over executive stock options hits techs hard - May. 24, 2006: "Stock options, a perennial thorn in the side of technology companies, have come back to haunt the sector in a big way.
Questions over stock option grants for executives have sparked federal investigations of more than a dozen companies, many of which are technology firms." [Money.CNN]falseK.T.2006-09-20T16:01:16-07:002006-09-20T23:01:16Z2006-09-20T23:01:16Ztag:blogger.com,1999:blog-34763115.post-115879327661187317Stock Options: The Backdating GamesStock Options: The Backdating Games: "Following a yearlong investigation, it appears the Securities and Exchange Commission is finally beginning to crack down on companies with questionable policies governing stock-option grants. In November, management at Analog Devices Inc. agreed to pay $3 million to settle an SEC investigation into the company's handling of stock-option awards. And threefalseK.T.2006-09-20T16:00:27-07:002006-09-20T23:00:27Z2006-09-20T23:00:27Ztag:blogger.com,1999:blog-34763115.post-115879322709193872Next Step in Stock Option Probes: 'Backdate' LawsuitsNext Step in Stock Option Probes: 'Backdate' Lawsuits: "Securities class action lawyers are preparing for the next wave of shareholder lawsuits as more companies and their top executives face federal probes and accounting restatements linked to the backdating of their stock options." [Law.com]falseK.T.2006-09-20T15:59:24-07:002006-09-20T22:59:24Z2006-09-20T22:59:24Ztag:blogger.com,1999:blog-34763115.post-115879316431744424Stock Options Backdating Information Center - ISSStock Options Backdating Information Center - ISS: "To keep our clients informed on the latest developments, Institutional Shareholder Services (ISS) has created an Options Backdating Information Center.
The center contains a new ISS white paper, An Investor Guide to the Stock Option Timing Scandal, which offers ISS’ perspective on best practices surrounding option grant policies. Additionally,falseK.T.2006-09-20T15:58:16-07:002006-09-20T22:58:16Z2006-09-20T22:58:16Ztag:blogger.com,1999:blog-34763115.post-115879309683911565SEC turns scrutiny to stock option backdatingSEC turns scrutiny to stock option backdating: "Securities and Exchange Commission Chairman Christopher Cox said Tuesday that possible stock option backdating is 'a matter of ongoing interest to our enforcement division.'
He said the SEC is also looking at option issues as it considers public comments on a proposed rule that would require better disclosure of executive compensation. 'The mannerfalseK.T.2006-09-20T15:57:06-07:002006-09-20T22:57:06Z2006-09-20T22:57:06Ztag:blogger.com,1999:blog-34763115.post-115879302632150610Broadcom problem growsBroadcom problem grows: "Broadcom warned investors Friday that its internal review of misdated stock options had uncovered deeper problems that will force it to recognize at least $1.5 billion in expenses -- double the Irvine company's original estimate in July." [MercNews]falseK.T.2006-09-20T15:56:24-07:002006-09-20T22:56:24Z2006-09-20T22:56:24Ztag:blogger.com,1999:blog-34763115.post-115879298405847760MercuryNews.com | 09/10/2006 | Firms tweaking ways of awarding optionsMercuryNews.com | 09/10/2006 | Firms tweaking ways of awarding options: "Some companies are tweaking their stock option plans to better peg payoffs to performance, encourage executives to manage with a long-term view and to make it harder to manipulate the pricing of options. Here's a sampler of changes recently disclosed, according to Equilar, a San Mateo provider of information on executivefalseK.T.2006-09-20T15:55:28-07:002006-09-20T22:55:28Z2006-09-20T22:55:28Ztag:blogger.com,1999:blog-34763115.post-115879292873608303Authorities probe improper backdating of optionsAuthorities probe improper backdating of options: "Federal regulators and academics, scrutinizing a broad pattern of well-timed stock-option grants, are exploring the extent to which companies improperly backdated grants to provide insiders an extra pay windfall." [Post-Gazette]falseK.T.2006-09-20T14:45:19-07:002006-09-20T21:45:19Z2006-09-20T21:45:19Ztag:blogger.com,1999:blog-34763115.post-115878871911473229A study in CEO greed - May. 30, 2006A study in CEO greed - May. 30, 2006: "One of the questions crying loudest from the developing scandal of backdating stock options is, Why now?
As new companies announce daily that they're investigating their stock option practices or that they've received inquiries from the SEC or federal prosecutors - United Health Group, Caremark Rx, (Research) and Juniper Networks (Research) are among thosefalseK.T.2006-09-20T14:39:44-07:002006-09-20T21:39:44Z2006-09-20T21:39:44Ztag:blogger.com,1999:blog-34763115.post-115878838415140438Options saga heats up as more companies are named - Jul. 12, 2006Options saga heats up as more companies are named - Jul. 12, 2006: "The list of companies being investigated in the stock-options saga grows longer by the day and could easily climb much higher, according to the professor whose research brought the issue to light.
"More than 50 companies are being investigated by the Securities and Exchange Commission and federal prosecutors over whether theyfalseK.T.2006-09-20T14:39:07-07:002006-09-20T21:39:07Z2006-09-20T21:39:07Ztag:blogger.com,1999:blog-34763115.post-115878834776209209Cheesecake Factory Is Reviewing Option GrantsCheesecake Factory Is Reviewing Option Grants: "Cheesecake Factory Inc. became the latest company to report that it is investigating the pricing of stock-option grants.
The Calabasas Hills, Calif., restaurant chain said the audit committee of the board had begun a review of options-grant practices. The company said the review was voluntary and prompted by recent media and Wall Street reports offalseK.T.2006-09-20T14:38:35-07:002006-09-20T21:38:35Z2006-09-20T21:38:35Ztag:blogger.com,1999:blog-34763115.post-115878831526506711Barnes & Noble Gets Subpoena; Novell Starts Internal Options ProbeBarnes Noble Inc. disclosed Tuesday that it received a subpoena from the U.S. Attorney for the Southern District of New York for documents regarding its stock-option practices." [WSJ]falseK.T.2006-09-20T14:37:45-07:002006-09-20T21:37:45Z2006-09-20T21:37:45Ztag:blogger.com,1999:blog-34763115.post-115878826504059691AMCC Responds to Derivative LawsuitAMCC Responds to Derivative Lawsuit: "Applied Micro Circuits Corporation (Nasdaq: AMCC) today announced that a derivative lawsuit has been filed in United States District Court for the Northern District of California against nine former officers of the Company alleging improper dating of stock options granted to these former officers on five occasions during the period from March 1998 throughfalseK.T.2006-09-20T14:37:03-07:002006-09-20T21:37:03Z2006-09-20T21:37:03Ztag:blogger.com,1999:blog-34763115.post-115878822383497063Apple Announces Update Regarding Stock Option GrantsApple Announces Update Regarding Stock Option Grants: "Apple today announced that it has been notified of derivative lawsuits filed in the United States District Court for the Northern District of California and the Superior Court for Santa Clara County. Both suits make claims against current and former officers and directors with respect to the company's awarding of stock option grants." [Apple]falseK.T.2006-09-20T14:36:26-07:002006-09-20T21:36:26Z2006-09-20T21:36:26Ztag:blogger.com,1999:blog-34763115.post-115878818631913285HP shareholder files suit over scandalHP shareholder files suit over scandal: "A U.S. congressional panel wants to question key figures in the scandal surrounding Hewlett-Packard Co.'s (NYSE: HPQ) investigation of media leaks, while a shareholder lawsuit was filed in state court accusing the company's top brass of breaching their duties." [TheStar]falseK.T.2006-09-20T14:35:23-07:002006-09-20T21:35:23Z2006-09-20T21:35:23Ztag:blogger.com,1999:blog-34763115.post-115878812398673837HP execs asked to testify in Washington; shareholder files suitHP execs asked to testify in Washington; shareholder files suit: "A congressional panel wants to question key figures in the scandal surrounding Hewlett-Packard Co.'s investigation of media leaks, while a shareholder lawsuit was filed in state court accusing the company's top brass of breaching their duties." [SFGate]falseK.T.2006-09-20T14:34:39-07:002006-09-20T21:34:39Z2006-09-20T21:34:39Ztag:blogger.com,1999:blog-34763115.post-115878807932050426American Tower Hit by SuitAmerican Tower Hit by Suit: "American Tower reported Tuesday it was on the receiving end of two lawsuits over its stock option grants and accounting.
One lawsuit is a securities class action filed in the United States District Court for the District of Massachusetts against the Boston-based operator of cellular and broadcast wireless towers." [Red Herring]falseK.T.2006-09-20T14:33:44-07:002006-09-20T21:33:44Z2006-09-20T21:33:44Ztag:blogger.com,1999:blog-34763115.post-115878802480898480Backdating of Executive Stock OptionsBackdating of Executive Stock 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. BackdatingfalseK.T.2006-09-20T14:32:32-07:002006-09-20T21:32:32Z2006-09-20T21:32:32Ztag:blogger.com,1999:blog-34763115.post-115878795283965919FAQ: Behind the stock options uproar | CNET News.comFAQ: Behind the stock options uproar | CNET News.com: "The tech industry's stock option backdating scandal appears to be gathering steam.
Last week, federal investigators announced criminal charges against former executives of Brocade Communications Systems, and they're hinting that more cases may be on the way. Meanwhile, Silicon Valley's top lawyers are scrambling to assuage their clients'false