Comverse technology backdating scandal
This strange but interesting chapter of the options backdating saga came closer to resolution last week when Alexander – back in the U. from his Namibian refuge — appeared in federal court in Brooklyn to enter a guilty plea to a single charge of securities fraud.In May 2006, just before he was indicted on multiple counts of securities fraud in connection with alleged options backdating, Alexander traveled to Israel.The bulk of the derivative lawsuit settlement consists of the previously disclosed agreement of Comverse’s former CEO Kobi Alexander to pay Comverse million to be applied to the class action lawsuit settlement.The derivative lawsuit stipulation of settlement (which can be found here), is dated December 17, 2009, the same day as the class action lawsuit settlement was announced.In a December 28, 2009 press release (here), the plaintiffs’ lawyers announced the settlement of the Comverse Technology options backdating-related derivative lawsuit.This derivative lawsuit settlement is separate from, but related to, the previously announced 5 million settlement of the Comverse Technology options backdating-related securities class action lawsuit (about which refer here).
While Alexander remained safely ensconced in his Namibian hideaway, the government’s prosecution of other Comverse executives went on.Alexander, as readers will no doubt recall fled to Namibia to evade options backdating charges, where he remains a fugitive.Due to his absence in Namibia, the arrangements for his payment of the million are complicated, and are set out in a separate agreement (here).There may be a few posts while I am away, but I will not be able to resume the regular publication schedule until mid-September.Thanks to my loyal readers for all of your support.
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Even though the the scandal moved into the realm of history several years ago, there was one small but important unresolved item.