Directors and officers insurers backdating claims face best questions to ask during online dating
A study by Erik Lie and Randall Heron, finance professors at the Universities of Iowa and Indiana, estimated that more than 2,200 companies manipulated stock-option grants at some point between the beginning of 1996 and late 2005.
SEC Chairman Christopher Cox said on Monday that Federal securities regulators are poised to file civil charges in a case involving stock option backdating. "For some period of time now, it's been abundantly clear that these are not merely episodic instances," Cox said.
The company's Specialty Insurance division, which provides D&O coverage and errors and omissions policies for companies, absorbed heavy losses from policies sold in 1997 through 2002, when the stock-market surge and subsequent slump sparked a wave of lawsuits targeting companies, their directors and investment banks.Roughly 60 companies, including Analog Devices have started their own investigations.More than a third of those businesses have already seen directors and other executives sued by shareholders over the issue.However, the majority of suits that have been filed in the options backdating scandal have been derivative actions.These suits are filed by shareholders on behalf of the company against directors and other executives.