Sec stock option backdating cases
Take-Two Interactive Software reached a million settlement agreement with the U. Securities and Exchange Commission, relating to charges that the game publisher engaged in falsifying financial records as part of a A settlement agreement had largely been expected, after Take-Two announced two years ago that it had received a notice from the SEC's staff that it would recommend that charges be filed against the company. Take-Two agreed to the settlement without admitting to or denying the SEC's allegations, the SEC said.
Vitesse settled the matter by agreeing to pay a million civil penalty.Mody and Kaplan have each agreed to a bifurcated settlement that provides they will be permanently enjoined and ordered to pay disgorgement, and that any civil penalty will be determined later by the district court.Mody has also agreed to be permanently barred from serving as an officer or director of a public company. Attorney's Office for the Southern District of New York today filed criminal charges against Tomasetta and Hovanec, and announced that Mody and Kaplan have pleaded guilty to criminal charges.The SEC's case against Tomasetta and Hovanec is contested. In 2007, the company and executives settled a class action over backdating allegations for .2 million, plus about 3 million shares of stock.Earlier this week the Wall Street Journal reported that a study from the University of Houston’s C. Bauer College of Business reveals as many as 141 companies that likely engaged in option backdating have never been investigated.
The study joins a list of research projects going back to the mid-1990s that conclude option backdating occurs (or numerous companies are extraordinarily gifted at granting stock options when stock prices are at their lowest).