More Companies Implicated in Options Scandal
Bookmark & ShareJuly 21, 2006
Source: Financial Times
When finance professor ERIK LIE and a colleague at the University Of Iowa this week revealed that up to 2,000 U.S. companies may be implicated in a widening stock options manipulation scandal, it was the first time anyone had put a hard number on the problem beyond already publicized cases. More than 60 companies are known to be under investigation by either the Securities and Exchange Commission, the justice department or, in many cases, both. At issue is whether companies or their executives backdated stock option awards to dates near historic lows in company share prices without properly disclosing and accounting for such moves, thus improperly enriching executives.
Contact: Erik Lie, ,
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