STOCK OPTIONS BACKDATING BY TECHNOLOGY COMPANIES

Backdating stock options is not illegal per se, and is actually a common practice in online and tech companies. However, it is illegal not to report the inflated price of those options as an expense. In the end, backdating stock options usually comes down to an accounting problem that, depending on the facts and circumstances of a case, can be unintentional, fraudulent, or criminal in nature.

The following questions have been addressed in this article:

Why are shareholders’ groups and pension funds suing companies that engage in the practice of backdating stock options?
Are executives being criminally prosecuted for backdating stock options?
What is the status of the federal government’s investigation of Monster Worldwide Inc. regarding backdated stock options?
Is there a civil case pending against Apple?

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