an equal and opposite reaction
Case Details for "Comverse"
$62 Million Settlement in Comverse Technology Stock Option Backdating Derivative Case
Comverse reached a $62 million settlement stemming from alleged stock option backdating practices by former directors and officers of the communications technology company, including Comverse's former CEO Jacob "Kobi" Alexander.
The bulk of the settlement, $60 million, will be paid to Comverse by Mr. Alexander, who fled to Namibia in 2006 to avoid federal fraud charges related to the options backdating scheme. His contribution will substantially assist Comverse in funding a $225 million class action settlement announced earlier this month.
In addition, Comverse's former General Counsel William Sorin and former Chief Financial Officer David Kreinberg will collectively pay more than one million dollars to Comverse. This amount is in addition to previous payments they made to the Securities and Exchange Commission. Several other defendants who were previously members of Comverse's compensation committee will collectively forfeit 155,500 outstanding unexercised options.
Other parties participating in the settlement include several former members of the company's board, and Comverse's auditor during the period of the backdating scheme, Deloitte and Touche LLP.
Posted on:2009-12-28
Company: Comverse
Class:
Scope: Nationwide
Type of Case: Securities
Settlement Administrator:
Contact Us Regarding This Settlement:
