LAWSUITS NEWS & LEGAL INFORMATION
Comverse Shareholder Settlement Agreed at $225 Million
This is a settlement for the Securities/Stock Fraud lawsuit.
New York, NY: A settlement totalling $225 million has been reached in the class action lawsuit brought against Comverse Technologies on allegations of stock option backdating.
Under the terms of the settlement, the former CEO Jacob "Kobi" Alexander, who absconded to Namibia in 2006 to avoid federal charges of fraud, will pay roughly $60 million toward the total settlement. Comverse's former general counsel and CFO are putting in more than $1 million, and the company's former auditor, Deloitte & Touche is putting in $275,000.
Earlier this month a $62 million settlement was reached between the law firm representing derivative plaintiffs and Comverse.
In addition to the financial portion of the settlement, Comverse has agreed to make significant changes to its corporate governance including making the chairman of the board an independent director, and separating the positions of chairman and CEO.
Published on Dec-29-09
Under the terms of the settlement, the former CEO Jacob "Kobi" Alexander, who absconded to Namibia in 2006 to avoid federal charges of fraud, will pay roughly $60 million toward the total settlement. Comverse's former general counsel and CFO are putting in more than $1 million, and the company's former auditor, Deloitte & Touche is putting in $275,000.
Earlier this month a $62 million settlement was reached between the law firm representing derivative plaintiffs and Comverse.
In addition to the financial portion of the settlement, Comverse has agreed to make significant changes to its corporate governance including making the chairman of the board an independent director, and separating the positions of chairman and CEO.
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