Settle sec mercury backdating
17, 2008 (LAWFUEL) – The Securities and Exchange Commission today filed settled charges against Igal Kohavi, Yair Shamir, and Giora Yaron, three former outside directors of California-based software maker Mercury Interactive, LLC.Without admitting or denying the allegations in the SEC’s complaint, Kohavi, Shamir and Yaron agreed to permanent injunctions and each will pay a 0,000 financial penalty to settle the charges.July 26, 2007 (Associated Press) WASHINGTON - Computer chip supplier KLA-Tencor Corp.on Wednesday became the third company to settle federal allegations of improper backdating of stock options, after being accused by regulators of concealing more than 0 million in compensation to executives and employees.“Despite warning signs, Marvell failed to detect or prevent the backdating,” said Marc Fagel, the SEC’s acting regional director in San Francisco.Marvell officials said they were pleased to put the SEC probe behind them. Dai are pleased this chapter is closed and are focused on moving forward,” said Marvell spokeswoman Louise Kehoe.The 17-page lawsuit accuses the company of backdating stock options to Marvell employees from at least early 2001 through 2004, primarily with Dai acting as Marvell’s “Stock Option Committee” to pick dates to rig options so they would be more favorable to company insiders.
and Mercury Interactive LLC, which were fined several million dollars under the accords.
As alleged, the backdating occurred from as early as 1997 to April 2002, while the overstatements of income that resulted from the backdating continued to appear in the company’s financial statements through 2005.
According to the SEC’s complaint, Kohavi, Shamir and Yaron approved 21 of those grants at the recommendation or with the direct participation of senior Mercury management.
The SEC also sued former KLA-Tencor chief executive Kenneth Schroeder, accusing him of repeatedly engaging in options backdating after becoming CEO in 1999 - including pricing large options awards to himself that allowed him to reap millions of dollars in windfalls never disclosed to the company's shareholders.
The SEC has been investigating more than 100 public companies, many of them in Silicon Valley, over suspect timing of stock option awards to executives.