March 20, 2006

Backdating Option Grants

The possibility that a number of companies have been backdating stock option grants to increase their value was the subject of a Wall Street Journal feature article (subscrip. req'd) this past weekend. The article notes that the practice "while not illegal in itself, could result in false disclosure." As a result, a company may be "vulnerable to an allegation of securities fraud." For some blogosphere commentary, see these posts from ProfessorBainbridge.com and Truth on the Market.

Posted by Lyle Roberts at March 20, 2006 5:28 PM | TrackBack
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