Options backdating is the new new thing in corporate scandals, with speculation that there may be a need for a federal taskforce to oversee all of the various U.S. Attorney offices that have issued subpoenas to companies on this issue. To date, shareholder litigation over these alleged practices appears to be limited to derivative suits (see, for example, this announcement from earlier this week). In a Forbes column posted this morning, however, former SEC Chairman Harvey Pitt notes that any improper conduct may "require a [financial] restatement, with class action litigation in the offing."
Addition: D&O Diary points out that a few securities class actions related to options backdating have already been filed. See this post.Posted by Lyle Roberts at May 26, 2006 10:51 PM | TrackBack