Backdating seems so mid-decade.
It was back in 2005 that the stream of securities lawsuits involving the back dating of stock options began.
There may not be a big firm associate alive that did not have the taks of investigating out how, when and why options were issued.
Like every financial scandal, it brought forth a ton of securities-related class action litigation. And though most people had put backdating in the backburners of their minds, it has been in the news in this very last part of the decade.
Last week, federal judge threw out a criminal backdating complaint — and a guilty plea — relating to backdating allegations against Broadcom executives. And yesterday brought the second biggest backdating settlement of all time.
The RiskMetrics Group’s Securities Litigation Watch has compiled a database of all the class action backdating lawsuits and their ultimate outcomes. As of December 18, the total settlements in options backdating class actions equals nearly $1.8 billion.
We’ve pulled the top 10. From the (relatively) paltry $18,000,000 Rambus paid to the absolutely monster 2008 UnitedHealth settlement…
Click here for the Top 10 Backdating Class Action Settlements>>>
(Pictured is then-CEO of UnitedHealth, William McGuire, in 2008; McGuire was CEO when the suit was settled.)
Settlement Amount: $18,000,000
Date Filed: July 17, 2006
Date Settled: September 7, 2007
Settlement Amount: $47,500,000
Date Filed: March 15, 2007
Date Settled: July 31, 2008
Image: Former CEO James Treacy
Settlement Amount: $72,000,000
Date Filed: October 6, 2006
Date Settled: June 9, 2009
Photo: CEO Sehat Sutardja
Settlement Amount: $160,000,000
Date Filed: May 19, 2005
Date Settled: June 2, 2008
Settlement Amount: $925,500,000
Date Filed: May 5, 2006
Date Settled: July 2, 2008
Image: CEO Stephen Hemsley
1. UnitedHealth Group -- $925,500,000
2. Comverse Technology -- $225,000,000
3. Brocade Communications Systems -- $160,000
4. Mercury Interactive Corp. -- $117,500,000
5. Marvell Technology Group -- $72,000,000
6. KLA-Tencor -- 65,000,000
7. Monster Worldwide, Inc. -- $47,500,000
8. Quest Software -- $29,400,000
9. Openwave Systems -- $20,000,000
10. Rambus, Inc. -- $18,000,000
Data compiled by RiskMetrics Group
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