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Comverse settles stock option backdating, accounting chargesComverse settles stock option backdating, accounting charges with SEC On Thursday June 18, 2009, 5:42 pm EDT NEW YORK (AP) -- Voicemail software maker Comverse Technology Inc. on Thursday said it has settled charges of improper backdating of stock options and other accounting practices with federal regulators. The company, which didn't admit or deny guilt to the Securities and Exchange Commission, wasn't fined. Instead, it was permanently barred from future violations of federal securities laws and ordered to file periodic reports with the SEC by Feb. 8. Comverse had delayed filing financial reports as it investigated past accounting practices. The company was cited for accounting practices that included reclassification of certain expenses and calculation of backlog sales orders. The violations came as a result of actions taken by senior executives who left the company in 2006. Three years ago, the SEC and federal prosecutors charged three former top executives with a scheme to manipulate stock options for profit. The options' grant dates were allegedly falsified to coincide with a low point in the stock's value. Wakefield, Mass.-based Comverse said it reported these matters to the SEC. The settlement is awaiting approval from the U.S. District Court for the Eastern District of New York. Shares of Comverse traded up 60 cents, or 8 percent, over-the-counter to $8.20 on Thursday. |
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