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Thanksgiving is a time to be grateful. In particular, at this time
of the year we should be thankful for our soldiers who are so far
away from their families and are sacrificing so much for us. We
should also think about helping those who live in need in our land
of so much plenty.
As a nation of investors, we should also be thankful for our
markets. One of the reasons that our markets are so strong and
are the envy of the world is the work of government officials who
work tirelessly to ensure their integrity.
So far, the story of the year has to be the backdated options
scandal. At perhaps over 100, companies’ corporate executives,
unbeknownst to shareholders, were backdating options dates
so they were guaranteed profits. Thankfully, the SEC and the
US attorneys are conducting a large number of investigations in
this area. It is also gratifying that a large number of corporate
directors are leading internal investigations of their own companies.
However, it appears there is no end in sight with respect to the
backdated options scandal. Two companies in particular have
recently been in the news.
On November 17, 2006, after the close of trading, Houston-based
HCC Insurance Holdings (NYSE: HCC) disclosed that the investigation
of the Company’s stock option granting practices revealed that
the Company used incorrect measurement dates for certain
stock option grants covering a significant number of employees
during the period from 1995 through 2006. The Company also
disclosed that that their CEO and founder had resigned, as well
as the Company’s General Counsel. The Company also disclosed
that the SEC is conducting an informal inquiry into this matter.
It appears investors who purchased HCC stock between
October 1, 2005 and November 17, 2006, are affected.
Another company with major backdated options issues is
Los Angeles-based KB Home (NYSE: KBH). The Company began
an investigation led by members of the Board and independent
legal counsel amid inquiries by governmental agencies such as
the SEC. This internal investigation revealed that the Company
had used the “wrong” dates for granting stock for eight years –
from 1998 to 2005. As a result of this disclosure, KB Home’s CEO
will be leaving. Also “leaving” will be the Company’s Head of
Human Resources and its General Counsel. The Company also
revealed that it is evaluating with its auditors whether it will be
necessary to restate certain of its previously filed financial statements
If you’re an affected investor in HCC Insurance Holdings
(NYSE: HCC), KB Home (NYSE: KBH ) or any of the cases under
investigation listed below, you may wish to contact us at
info@securitiessleuth.com or 877-511-4717 to discuss your options.
Other cases under investigation:
Apollo Group, Inc. (NASDAQ: APOL)
Aspen Technology Inc. (AZPN)
Marvell Technology Group (NASDAQ: MRVL),
McAfee Inc. (MFE)
Meade Instruments Corp. (NASDAQ: MEAD)
Presstek, Inc. (NASDAQ: PRST)
Quest Software (NASDAQ: QSFT)
Warner Chilcott Limited (NASDAQ:WCRX)
Now with respect to securities cases that have recently settled. 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.
Ask Jeeves (ASKJ)
Class Period: November 18, 1999 to May 16, 2000
Claims Deadline: February 5, 2007
Claims Administrator: Rust Consulting
Broadwing, Inc. (BRW)
Class Period: January 17, 2001 to May 21, 2002
Claims Deadline: November 30, 2006
Claims Administrator: Garden City
Information regarding other recent settled cases, including the
cases listed below can be found at www.securitiessleuth.com.
Advanced Marketing Services
King Pharmaceuticals, Inc.
MasTec, Inc.
McLeodUSA, Inc.
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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