of springloading); Hearing on Stock
Options Backdating Before the S.
Options backdating has turned out to be more widespread than most believed.
Options backdating violated the accounting rules and, in many cases, the securities laws.
The report found that to date, the
options backdating scandal has resulted in an unadjusted initial decline in market value of $5.
The Securities Class Action Clearinghouse, a database maintained by Stanford Law School, lists 21 securities fraud class actions involving allegations of stock
options backdating.
But there are egregious things that become newsworthy, whether it's an Enron type of situation or now what we're seeing with the
options backdating probe.
Robbins Geller is responsible for the largest securities class action recovery in history, the largest-ever
options backdating recovery, the largest opt-out recovery, the largest credit crisis recovery, the largest corporate takeover recovery, and secured a historic jury verdict for the shareholder class after seven years of litigation and a six week trial against Household International, its CEO and CFO.
Alexander, who fled to Namibia in 2006 to avoid federal fraud charges related to the
options backdating scheme.
RUEHLE IS JUST ONE CHAPTER OF THE STOCK
OPTIONS BACKDATING saga at Broadcom Corp.
Another possible cause for the decline in SCAs was the increase in
options backdating cases, the vast majority of which were brought as derivative lawsuits, and which may have served to "distract" the plaintiff's bar from filing SCAs.
But the big crime--the one that has made all of the headlines--has been the massive stock
options backdating scandal that not only forced McGuire to step down as UnitedHealth's CEO, but also served as one of the pivotal cases that thrust backdating into the spotlight as the biggest corporate accounting fiasco since the chicanery of Enron, et al.
McGuire serves as the poster boy for executives that deceptively lavished corporate funds on themselves by engaging in
options backdating," says Chris Bebel, a former enforcement attorney at the SEC and now an independent attorney in Houston who serves as an expert witness in securities litigation.
