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Comverse Agrees to Settlement of Stock Options Backdating Charges

December 21, 2009 (PLANSPONSOR.com) – Comverse Technology has agreed to pay $225 million to settle a securities class action over backdated stock options.

According to The American Lawyer, the settlement agreement still has to be approved in federal court. Under the agreement, Comverse will pay $165 million by selling auction rate securities back to UBS, or if that doesn't work, the company will pay with a mixture of cash and stock. 

Former CEO Jacob "Kobi" Alexander will pay $60 million.

The Securities and Exchange Commission previously settled with William Sorin, former general counsel for Comverse Technology, on civil fraud charges relating to his part in an options backdating scheme (see Former Comverse Counsel Settles on Backdating Charges).

The Comverse settlement beats one by Broadcom for the title of second-largest stock options backdating suit settlements (see Broadcom Settlement Second Largest in Backdating Suits). UnitedHealth Group holds the title in backdating suit settlements after paying $925 million to settle a suit in 2008.

Rebecca Moore
editors@plansponsor.com









 

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