It’s the second-biggest backdating settlement of all time.
Information technology company Comverse has agreed to pay $225 million to settle a class action over backdating stock options. The settlement agreement must be approved by a Brooklyn federal court, The American Lawyer’s Ben Hallman reported.
This backdating tale has an interesting back story. The WSJ Law Blog’s Ashby Jones noted that Comverse’s former CEO, Kobi Alexander, fled with his family to Namibia in 2006, soon after he was indicted for backdating stock options.
Namibia does not have an extradition treaty with the U.S., so he can hang out there as long as he likes. He may be far away, but the settlement will still hit him in the wallet — Alexander will pay $60 million of the $225 million total.
The end of the decade is bringing a lot of backdating news — last week a federal judge tossed out a backdating case involving Broadcom, and voided a guilty plea while he was at it.
The biggest backdating settlement was $920 million paid by UnitedHealth Group.
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