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The excess of executive compensation once again
surfaces. Last week, we reported on instances of
corporate backdating of options to benefit their
executives.
Now it appears the practice wasn’t restricted to a
few isolated companies. Currently, well over twenty
companies are under investigation for the practice.
Why didn’t the companies behave in a more
straightforward manner and simply increase the
compensation of their executives, rather than resort
to such underhanded practices. Most importantly,
where were the directors? You know -- “directors” --
the group of individuals who should be protecting
not shareholders, but the company’s integrity –
what were they doing? Did they really review the
backdated options before approval or were they
practicing their short game at a country club?
Shareholders have already taken action against
some of the companies that engaged in such practices.
However, if you are an affected investor in any of
the following companies you may wish to contact us
to discuss your options:
Altera Corporation (NASDAQ: ALTR)
Jabil Circuit, Inc. (NYSE: JBL)
Brooks Automation, Inc. (NASDAQ: BRKS)
Affiliated Computer Services (NYSE: ACS)
Caremark (NYSE: CMX)
Safenet (NASDAQ: SFNT)
American Tower (NYSE: AMT)
Power Integrations, Inc. (NASDAQ: POWI)
It appears that each of these companies may have
backdated the date when certain options were granted.
We are currently investigating each of these companies
(as well as the cases below) and if you are an affected
investor, you may wish to contact us at
info@securitiessleuth.com or 877.511.4717 to discuss
your options.
Other situations which may be of interest are:
Cognos (NASDAQ: COGN) On Monday, May 15, after
the close of trading, the Company, which is Canada’s
biggest software Company, disclosed that it would not
file its Annual Report on Form 10-K for the fiscal year
ended February 28, 2006, on time because of an
ongoing review by the Staff of the Division of Corporate
Finance of SEC that may impact the manner in which
the company allocates revenue. On May 16, 2006,
Cognos shares declined $4.46 per share, or
approximately 13%, on heavier than usual volume.
Investors who purchased Cognos stock between
June 23, 2005 and May 15, 2006, are affected.
GlobeTel Communications Corp. (AMEX: GTE) It is
alleged that the Company made false and misleading
statements regarding the Company's $600 million deal
with Moscow-based LLC Internafta to provide internet
services in Russia. In truth, it is alleged that the deal
was a sham. An April 11, 2006, article published by
The Motley Fool questioned the credibility of the entire
deal. On April 11, 2006, after the truth about the joint
venture was exposed, the stock dropped 15%,
trading at only $1.78, well below its Class Period high
of $3.92. Investors who purchased GTE between
December 22, 2005 and April 11, 2006, are affected.
Discovery Laboratories (NASDAQ: DSCO) The Company
had represented for some time that it would receive
FDA approval in April 2006. But on April 24, 2006, the
Company's stock dropped more than 50% after it
revealed that the regulatory process would be
significantly delayed. Investors who purchased
DSCO between December 28, 2005 and
April 25, 2006, are affected.
XM Satellite Radio Holdings Inc. (NASDAQ: XMSR)
On February 16, 2006, the Company disclosed:
(1) higher than expected expenses and net loss
due to greater than expected spending on new
subscription acquisitions and (2) a director resigned
due to his concerns about the cost of growth in
terms of losses. Prior to this disclosure, the
Company’s CEO dumped nearly all his XM shares
for proceeds of approximately $11.8 million.
Investors who purchased XM stock between
July 28, 2005 and February 15, 2006, are affected.
If you are an affected investor in any of these companies,
you may wish to contact Mark McNair at
info@securitiessleuth.com or 877.511.4717 to
discuss your options.
At this time, there are also an unusually large number
of corporate irregularities. Other cases of corporate
irregularities under investigation include:
Zale Corporation (ZLC)
Tier Technologies, Inc. (TIERE)
CSK Auto Corporation (CAO)
Global Power Equipment (GEG)
Allion Healthcare, Inc. (ALLI)
Terayon (TERNE)
PainCare Holdings, Inc. (PRZ)
Merge Tech Inc. (MRGE)
For details regarding any of these cases, go to
www.securitiessleuth.com.
Now with respect to settled cases. If you are an affected
investor – you purchased any of these stocks during the
relevant class period, you may wish to contact the claims
administrator to obtain additional information. Remember,
if you don’t submit your claim form, you won’t receive your
share of any settlement.
Whitehall Jewellers (JWL)
Class Period: November 19, 2001 to December 10, 2003
Claims Deadline: August 14, 2006
Claims Administrator: Gilardi
Safety-Kleen Corp. (SK) (bonds)
Class Period: April 17, 1998 to March 5, 2000
Claims Deadline: June 5, 2006
Claims Administrator: Garden City
Information regarding other recent settled cases, including
the cases listed below can be found at www.securitiessleuth.com.
ARM Financial Group, Inc. (ARMGQ)
Network Engines, Inc. (NENG)
Boston Chicken, Inc. (BOST)
Surebeam Corp. (SURE)
Salton, Inc. (SFP)
Bristol-Myers Squibb (BMY)
Royal Ahold N.V. (AHO)
Again you should contact the claims administrator (rather than
us). However, if you are an affected investor in any of the
companies under investigation, you many wish to contact us
so that you can consider your options.
Likewise, if you happen to be aware of corporate restatements
or other financial fraud -- especially if you're a victim --
you're encouraged to contribute to the Sleuth by giving your
own tip-offs at www.securitiessleuth.com or by e-mailing
info@securitiessleuth.com. You can also call Mark McNair
at 877-511-4717. If you have a friend or colleague you
think would benefit from The Sleuth, please pass along
this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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