This derivative lawsuit settlement is separate from, but related to, the previously announced 5 million settlement of the Comverse Technology options backdating-related securities class action lawsuit (about which refer here).The bulk of the derivative lawsuit settlement consists of the previously disclosed agreement of Comverse’s former CEO Kobi Alexander to pay Comverse million to be applied to the class action lawsuit settlement.Three former Comverse Technology executives are facing criminal and civil charges for fraudulently backdating millions of stock options.Former CEO Jacob "Kobi" Alexander, former CFO David Kreinberg and former General Counsel William F.Due to his absence in Namibia, the arrangements for his payment of the million are complicated, and are set out in a separate agreement (here).
"The Justice Department is determined to see that our markets operate fairly and honestly," Paul J. According to the DOJ complaint, Alexander, Kreinberg and Sorin pocketed millions in profits through their backdating scheme while issuing false and misleading financial statements to stockholders about the real value of the options. The Do J and the SEC claim Alexander, Kreinberg and Sorin fraudulently backdated options awarded under various Comverse stock option plans to days when the stock was trading at periodic low points.
The derivative lawsuit stipulation of settlement (which can be found here), is dated December 17, 2009, the same day as the class action lawsuit settlement was announced.
The settlement consists of a number of different components, the most significant of which is Alexander’s agreement to pay the million to Comverse.
How can company executives hide a stock option backdating scheme from directors, auditors and investors? attorney's office after the maker of voice-mail software discovered errors in stock-option accounting and three top executives had resigned.
The government's criminal and civil complaints filed last week against three former executives of Comverse Technology Inc., offer possible answers, detailing how the trio allegedly engaged in a concerted scheme of deceit to avoid detection. is trying to extradite him to face charges related to stock-option backdating. Federal prosecutors ramped up their attack on alleged stock option fraud Wednesday, charging that former executives of a voicemail technology company awarded options to phantom employees, then shifted those awards to a "slush fund" to reward favored workers. The May 2 request relates to grants dating to 1995, Comverse said Thursday in a Securities and Exchange Commission filing.