LAWSUITS NEWS & LEGAL INFORMATION
Stock Options Backdating
New York, (May-02-08) A shareholder derivative lawsuit was brought against Apollo Group Inc., a for-profit education company, alleging that it engaged in stock options backdating. The suit also named several current and former officers and directors of the company as defendants. Officials who had dealt with suit lawsuits stated that shareholder derivative lawsuits are brought by a shareholder on behalf of the company. The suit, filed in September 2006, in the US District Court in AZ, stated that senior Apollo insiders diverted hundreds of millions of dollars of corporate assets to their accounts by manipulating stock option grant dates. The company conducted an investigation into its operations, which revealed that the company used the wrong date for option awards and failed to document the dates accurately.
A settlement was reached in the case, in which Apollo was ordered to reprice 413,000 stock options. Additionally, if it had not done so already, it was to implement corporate governance reforms as well as have the company or its insurers pay up to $2.75 million in attorney's fees. [REUTERS: APOLLO SAYS BACKDATING SETTLEMENT APPROVED]
Published on May-5-08
A settlement was reached in the case, in which Apollo was ordered to reprice 413,000 stock options. Additionally, if it had not done so already, it was to implement corporate governance reforms as well as have the company or its insurers pay up to $2.75 million in attorney's fees. [
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