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CNET Execs Claimed By Backdating Scandal

CNET general counsel Sharon LeDuy and CEO Shelby Bonnie stepped down Wednesday after an internal investigation by the company found "deficiencies with the process by which options were granted at CNET, including in some instances the backdating of stock options grants" from 1996 through at least 2003. According to SEC filings, between 1999 and 2003 Le Duy received six options awards, and four of them came at quarterly lows in share price. The odds that four of six grants would come at quarterly lows is less than one in 880,000, according to an equation provided by ERIK LIE, the University of Iowa professor whose research on options grants raised awareness of the backdating phenomenon earlier this year.

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