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It
has been "alleged" that a dozen companies backdated
options
they granted their executives to provide these
executives
with built-in gains. Or, perhaps the executives
were
just "lucky" for their options to be based dates that
were
at, or close to, the low of their company's stock
price
for the year. But in some cases, it would have been
easier
to pick Powerball winners. Without a doubt, over
the
next several months, there will be a great deal of
scrutiny
as to how such dates were selected and who
was
involved in these decisions.
Of
course, it wasn't only a dozen corporations that have
been
accused of this practice. Based on current news
reports,
it appears the number of companies under
investigation
is closer to thirty companies and it is likely
that
this number will grow.
But
in some thirty or so instances of alleged backdating of
options,
the price of the company's stock to date hasn't
been
hurt by this deceitful practice. At this time, we are
only
bringing to your attention a mere dozen of those
cases
where their stocks dropped significantly once when
it
was revealed that the companies were being investigated
for
possible backdating of options.
The
dozen companies we would like to bring to your attention are:
Affiliated
Computer Services Inc. (NYSE: ACS)
Altera
Corp. (NASDAQ: ALTR)
Brooks
Automation Inc. (NASDAQ: BRKS)
Juniper
Networks, Inc. (NASDAQ: JNPR)
KLA-Tencor
Corp. (NASDAQ: KLAC)
McAfee
Inc. (NYSE: MFE)
Openwave
Systems, Inc. (NASDAQ: OPWV)
Power
Integrations Inc. (NASDAQ: POWI)
Quest
Software (NASDAQ: QSFT)
RSA
Security Inc. (NASDAQ: RSAS)
SafeNet
Inc.(NASDAQ: SFNT)
Semtech
Corp. (NASDAQ: SMTC)
Information
regarding the backdating probe related to
each
company is at www.securitiessleuth.com.
Investors,
in general, should be concerned with the practice
of
backdating of options. As if corporate executives aren't
paid
enough, it is reprehensible for companies to "mask"
their
executives' true compensation by backdating options
based
on days when their corporate stock traded at low
levels
for the year.
Once
again, we must ask "Where were the directors?"
"Who
is looking out for the interests of shareholders?"
"If
corporate officers deserved additional compensation,
why
did corporate boards straightforwardly grant additional
compensation
rather than backdate options they offered
their
executives?"
It
is clear, even with Ken Lay and Jeffrey Skilling facing
long
jail sentences, that not all the problems with corporate
conduct
have been addressed. Systematic of unresolved
problems
in corporate governance is this ongoing scandal
involving
the backdating of options. Unfortunately, it
appears
that many companies, with the acquiescence or
lack
of diligence on the part of their boards, enriched their
executives
at the expense of shareholders. Without action,
not
only by regulatory bodies, such as the SEC, but also
the
group most affected - shareholders - it is unclear when
matters
will change. We suggest that if you are an affected
investor
with a loss in any of the above-named companies,
you
may wish to contact us at info@securitiessleuth.com
or
877.511.4717 to discuss your options.
If
you aren't too tired scanning the above-list of a dozen
companies
affected by "alleged" backdating of options,
there
is another list we would like for you to review.
After
all, the backdating of options is just one of many
forms
of corporate irregularities that have negatively
affecting
shareholders. A much more common practice
which
often has devastating effects on shareholders is
financial
restatements.
In
addition to the situations involving the backdating of
options,
other cases of corporate irregularities under
investigation
(with details at www.securitiessleuth.com)
which
you may wish to contact us if you are an affected
investor
include:
Cognos
(NASDAQ: COGN)
GlobeTel
Communications Corp. (AMEX: GTE)
Discovery
Laboratories (NASDAQ: DSCO)
XM
Satellite Radio Holdings Inc. (NASDAQ: XMSR)
Zale
Corporation (ZLC)
Tier
Technologies, Inc. (TIERE)
CSK
Auto Corporation (CAO)
Global
Power Equipment (GEG)
Allion
Healthcare, Inc. (ALLI)
Terayon
(TERNE)
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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