Sec stock option backdating cases nc adult dating
The practice has the effect of causing the options to be automatically “in the money” because they have been deemed to have been granted at the most advantageous time.
As is true of many compensatory schemes, the practice itself is not necessarily illegal, but failing to disclose it, account for it, and pay appropriate taxes is illegal.
All of the cases involve securities fraud claims based on backdating and the failure to disclose.
The two complaints filed yesterday, however, focus primarily on the failure to disclose the scheme.
Backdating options violated company policy according to the complaints.
In two instances options were “double backdated” because shortly after the initial backdated options were granted the market price dropped, requiring that they be backdated again so they would be in the money.
The case centered on allegations that Take-Two backdated stock options for its officers, directors, and key employees that could be exercised at a strike price lower than where the stock was trading on the date the options were granted.
The SEC alleged that Take-Two defrauded investors by failing to properly record the stock option compensation grant date and strike price.
Gerhardt, the former Chief Financial Officer, and Steven J.
Landmann, the former Controller, the SEC detailed a scheme in which the two caused the company to grant undisclosed, in-the-money stock options to themselves and other officers, employees and directors.
The complaints also detail the fact that the options could be exercised immediately, thus giving the recipients an instant profit.
This contrasts with most cases where the options vest over a period of time.
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.Tags: Adult Dating, affair dating, sex dating