Options Backdating Information Center

Background on the Options Backdating Scandal
There are now dozens of companies under investigation for potentially backdating stock option grants and the list of companies coming under scrutiny seems to be expanding daily.

In response to investor complaints concerning the scandal, the Securities and Exchange Commission (SEC) recently added new requirements for the disclosure of option grants. Investors are also taking action by filing derivative lawsuits claiming that directors and officers breached their fiduciary obligations by backdating options or otherwise manipulating grant dates to maximize executive pay.

Companies who backdate stock options could be required to resubmit financial statements. They also could be subjected to civil and criminal sanctions and face serious tax consequences and shareholder litigation.

Introducing the Options Backdating Information Center
The Options Backdating Information Center was created to keep our clients informed on the latest developments around options backdating.

The center contains a new white paper, An Investor Guide to the Stock Option Timing Scandal, which offers perspective on best practices surrounding option grant policies. Additionally, the center contains numerous recent options backdating studies.

The Options Backdating Information Center will continue to provide up-to-date information on this fast-moving issue. We encourage you to visit often.