CORPORATE CRIME REPORTER
At
Least 257 Companies Have Options Backdating Problems
21 Corporate Crime Reporter 14, March 26, 2007
At least 257 public companies have option backdating problems.
That’s according to a report released today by Glass Lewis, the Denver, Colorado-based shareholder services and research firm.
The report found that to date, the options backdating scandal has resulted in an unadjusted initial decline in market value of $5.5 billion and the recognition of at least $12.3 billion in additional pre-tax compensation expenses.
At least 85 executives and directors at 46 companies have been fired, demoted or resigned, the report found.
The report also found that the scandal has resulted in 252 internal investigations, 128 SEC investigations, 58 Department of Justice investigations, 129 shareholder lawsuits, and six criminal cases.
A big chunk of the cases are in the computer industry – including 43 in software and programming and 37 in semiconductors.
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