Backdating action ebbing for enforcers

Discussion in 'Wall St. News' started by archon, May 5, 2008.

  1. archon


    Backdating action ebbing for enforcers
    Despite Monster’s rearing its ugly head, the scandal over option grant rigging is seen ending with a whimper

    By Nicholas Rummell
    May 5, 2008

    Option-backdating enforcement emerged from hibernation last week, as the Securities and Exchange Commission charged two former executives of Monster Worldwide with rigging option grant dates and settled its case against Broadcom. In addition, Pixar’s former CFO, now a director at Google, was revealed to be under investigation for backdating.

    Don’t expect the flurry of investigations to continue for long, however. The credit crisis has hijacked regulators’ attention. And given the statute of limitations for pursuing penalties on backdating abuses (typically five years), such cases could soon be out of federal investigators’ reach. It’s estimated that backdating occurred primarily in the late 1990s and virtually ceased around 2003, when the SEC required additional disclosure of stock option plans. That makes this year the final one in which authorities can reap penalties from backdaters...

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