Option backdating settlement
In other words, 35% of the litigation observations were parallel.
In contrast, 65% of the litigation observations were derivative lawsuits (without any private securities class actions).
Elson added that the settlement with Mc Guire is a “significant accomplishment” that “doesn’t happen very often.”in executive compensation in the future.
The case is monumental for shareholders seeking to recover losses sustained as a result of improper accounting for backdated stock options and is the largest recovery in a securities class action in the Eighth Circuit.
We’ll continue to fight those counts because he was innocent.” The four charges carry a maximum possible sentence of 80 years in federal prison, a U. After that investigation, Karatz retired under fire from KB Home and the company agreed to restate earnings, accounting for million in undisclosed options-related compensation.
A federal jury in Los Angeles convicted Karatz of two counts of mail fraud, making false statements in a regulatory filing and lying to the company’s accountants. The jury rejected the government’s claim that Karatz intentionally defrauded shareholders by backdating stock option grants from 1999 to 2005 to make them more valuable. Wright II said Karatz could remain free on -million bond, secured by his Bel-Air home, until sentencing. Companies can boost the value of these options by backdating them to dates when the stock price was lower than the actual grant date. A federal judge in Santa Ana dismissed charges against both men and against two other company executives, saying prosecutors and unfairly influenced witnesses, making it impossible for the defendants to receive a fair trial.
Noel cautioned plaintiffs’ counsel, “I think I [previously] . With a court order requiring United Health to produce documents defendants considered to be work product, and the knowledge that devastating information would be made available for all the world to see, plaintiffs gave defendants no choice but to come to the bargaining table and resolve the case.