|  | | 2008 News and Press Releases | | |
SETTLEMENT NEWS:
Internal Report Describes Shenanigans At Comverse
Shannon Henson
Securities Law360. January 30, 2008
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EXCERPT: Internal investigations at Comverse Technology Inc. have found that executives backdated stock options and often manipulated earnings to meet Wall Street's expectations for the company, according to papers filed with the U.S. Securities and Exchange Commission. The news of the finalized report comes amid a multimillion-dollar fight between the company and its former chairman and chief executive officer, Jacob "Kobi" Alexander. The company filed a fraud suit against its former leader earlier this month. He, in turn, filed a $72 million fraud countersuit. Comverse's filing with the SEC Tuesday detailed two investigations by a special committee. One, which began in March 2006, concerned the company's alleged backdating of stock options. The other, which began in November 2006, centered on alleged manipulation of the company's earnings as well as some revenue recognition issues. |
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