Sec back dating inquiry
As the dust settles on this case, there are lessons to be drawn from that one case and from the plethora of investigations the government commenced on the issue of stock options backdating.
As a whole, the investigations demonstrate the wide sweep the government will take when it tackles an issue of corporate fraud.
Others question the reason Dell chose to disclose the inquiry now, along with the results to date of its inquiry.
Dell’s situation highlights the difficult issue companies face when deciding whether to disclose an SEC investigation. There is no legal duty to disclose an SEC investigation.
It is being examined by the Securities and Exchange Commission. 7, the company announced that investors should no longer rely on its prior disclosures about the findings of its continuing internal probe. Noncash compensation costs related to backdating will be about million, plus additional tax-related expenses.
It had previously said a preliminary review suggested no intentional backdating occurred and any charges were likely to be minor. (Headlines) (Options chart) The maker of gene-testing devices said on Aug 1 that an internal probe has uncovered "certain documentation lapses" in its stock options grant processes from 1997 through 1999, including one instance when the option grant date should have been recorded differently.
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Recognized for providing "superior levels of service response time, business acumen, securities law expertise, and strength and depth of team" (Legal 500 US), and cited as "a standout performer in the regulatory sphere with impressive depths of quality on both the advisory and enforcement sides" (Chambers USA), Wilmer Hale has played a central role in a number of prominent US federal and state securities investigations and regularly represents companies, directors and senior management in governmental and internal investigations.At its peak, the government put approximately 123 companies under investigation for alleged accounting violations in the backdating and pricing of stock options given as compensation to company executives.The investigations cost companies hundreds of thousands of dollars to defend, and resulted in the firing of several high-level executives.The Santa Monica, Calif., videogame company said on July 28 that the SEC has asked the company for documents related to its stock-option grants as part of an informal inquiry.The company also said its board has appointed a special subcommittee of independent directors to conduct an internal review of the companys historical stock-option grant practices. 25 the company said it appears likely that actual measurement dates for certain historical stock-option grants will be found to differ from the recorded grant dates for such awards.