Backdating of Stock Options
The issue of backdating of stock options has recently been the subject of headlines. Backdating involves the practice of dating a stock option award with a date from sometime in the past. It is usually done so as to guarantee that the options are valuable as the exercise price is assured to be a price below the actual price of the stock at the actual time of the award, as opposed to the backdated date. Recently many. Companies open themselves up to a host of possible criminal penalties by backdating options, such as Falsification Of Business Records, Wire Fraud and Mail Fraud. Authorities are currently investigating more than 130 companies for such practices. Companies which have recently been the subject of such investigation including, Apple Computer Company, Cablevision, UnitedHealth Group, Vitesse Semiconductor, Affiliated Computer Services, CNet , Juniper Networks. Recently, several former executives of Comverse Technology, including the company’s general counsel, were indicted in the Eastern District of New York, and executives of Brocade Communications Systems, Inc., were indicted in the Northern District of California. The Southern District of New York is also reportedly actively engaged in criminal stock option investigations.
The Meissner firm has the experience and knowledge to defend corporate executives in defending against any such allegations, as well as offering its investigatory services on behalf of companies, boards of directors, and special board managements committees of suspected criminal or regulatory misconduct. The firm also represents executives before regulatory and prosecutorial agencies seeking to deter prosecution. By careful evaluation of the facts, the well known reputation of the firm assists in demonstrating that the client will, if prosecuted, be able to present a strong defense to such allegations. The Meissner firm has experience dealing with various state, federal, and regulatory agencies in connection with such investigations. The Meissner firm also advises corporate and institutional clients regarding the establishment and implementation of specific compliance concerns so as to avoid such issues in the future.
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