Comverse options backdating

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Of late, Delaware's Court of Chancery has agreed to hear a shareholder derivative suit that is aimed at both the directors and the recipients of backdated stock options; the former for a breach of their fiduciary duty, and the latter for unjust enrichment.3 The case of former Comverse CFO, David Kreinberg, highlights the reality that repercussions may extend beyond civil liability.Having been the first to plead guilty to charges of fraud and conspiracy in relation to backdating, Mr.Options backdating contravenes the very nature and purpose of stock option grants.

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By drafting or modifying the grant document to reflect a past date associated with a favourable exercise price, one may create the illusion that the decision to grant options was, in fact, made on the indicated date.The notice concludes with a warning that enforcement action may be taken if the CSA is made aware of any non-compliance with securities legislation.While the CSA indicates that options backdating is not as rampant in Canada as it is in the U.Kreinberg was also forced to pay .4 million in order to settle civil fraud charges.The situation is similar for Comverse's former general counsel as well as former CEO, Jacob Alexander.

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