Cnet options backdating travis wall dating ivan
CNET's options issues first came to light in May 2006, when the Center for Financial Research and Accountability ("CFRA") published an analysis of option-granting practices of one hundred publicly traded companies.The CFRA report specifically identified CNET as a company whose pattern of granting options indicated backdating.
This agreement was not, however, all encompassing, and now the parties dispute the scope of books and records to which plaintiffs are entitled.
Summarized as succinctly as possible, the issue is whether plaintiffs are entitled to documents relating to options granted before plaintiffs owned stock in CNET.
That article and its findings have led to the filing of numerous federal and state law actions and to well over one hundred SEC investigations.
This case is somewhat unique, however, because here the defendant corporation has admitted that it engaged in backdating stock options granted from the time of its IPO in 1996 through at least 2003.
In mid-October 2006, CNET released further, more specific findings from the special committee, which concluded backdating had been a problem for the company from the time of its IPO in 1996. Thus, key to establishing demand futility was particularized facts demonstrating that backdating occurred and either that (1) a majority of the current board received backdated options or (2) a majority of the current board engaged in backdating itself.