The shareholders filed a motion to compel inspection, and on the eve of trial, CNET agreed to allow the shareholders to review some of the documents.The shareholders and CNET disagreed on the scope of the review.
Other similar practices are being reviewed by government officials as well.
Here's a look at companies that have come under scrutiny for past stock-option grants and practices.
On March 1, 2007, CNET announced the public launch of BNET, a website targeted towards business managers.
The information in this post was last updated on September 10, 2008 The purpose of this blog post is to track options backdating related litigation.
Although backdating had not yet been recognized as a problem, the provisions of Sarbanes-Oxley requiring that insiders report the acquisition of securities, including options, within two days of receipt greatly hindered the ability of corporations to backdate options.
Under previous regulations, corporations could wait 45 days or, in some cases, over a year to report options, thus providing ample time for backdating.
The defendants include not only San Disk, but M-Systems and certain directors and officers of M-Systems.
Fifty-two companies currently under criminal investigation. Moreover, the company avoids having to expense the options as current compensation, thus increasing earnings in the near term.
In addition CNET currently has region-specific and language-specific editions.
These include the United Kingdom, Australia, China, Japan, French, German, Korean and Spanish.
Professor Lie concluded that the robust profitability of so many options was statistically impossible absent some artificial influence such as backdating.