Jabil circuit sec investigation backdating austrialian dating
OPWV Broadcom BRCM Power Integrations POWI Brooks Automation BRKS Quest Software QSFT CNET Networks, Inc.
CNET Rambus RMBS Delta Petroleum DPTR RSA Security RSAS F5 Networks, Inc.
73, ¶¶ 8, 117) Although not unlawful per se, backdating requires attention to Generally Accepted Accounting Principles ("GAAP"). 73, ¶ 211) Because a stock option that is not backdated has no intrinsic value on the measurement date, a company need not record any employee compensation. 73, ¶ 211) In documents filed during the class period, Jabil reported that "[t]he Company applies APB Opinion No.
73, ¶ 6) The exercise price of a backdated option is less than the fair market value of a share of common stock on the day of the grant, resulting in an "instant paper gain." (Doc. 73, ¶ 211) A backdated option has intrinsic value on the measurement date and "the difference between its exercise price and the quoted market price must be recorded as compensation expense to be recognized over the vesting period of the option." (Doc.
Lewis ("Lewis") acted as chief financial officer from August, 1999, through September, 2004. 73, ¶ 193) On March 21, 2007, Jabil stated that the 2003 financial statement and disclosure "should not be relied upon." (Doc. Assur., 500 F.3d at 1282 (quoting Bell Atlantic Corp. A defendant may raise a statute of limitations defense in a motion to dismiss for failure to state a claim "when the complaint shows on its face that the limitation period has run." Avco Corp. Precision Air Parts, Inc., ("Sarbanes-Oxley"), a plaintiff was required to bring a section 10(b) claim "within one year after the discovery of the facts constituting the violation and within three years after such violation." Lampf, Pleva, Lipkind, Prupis & Petigrow v. Under Sarbanes-Oxley, a plaintiff must bring a section 10(b) claim within two years after discovery of the facts evidencing securities fraud or within five years after the fraudulent conduct, whichever first occurs. Sarbanes-Oxley requires initiation of the action within the earlier of two years after discovery of a fact evidencing securities fraud or five years after the fraudulent conduct. To state a claim under section 10(b) or Rule 10b-5, a plaintiff must allege "(1) a misstatement or omission (2) of a material fact (3) made with scienter (4) upon which the plaintiff relied (5) that proximately caused the plaintiffs loss." Theoharous, 256 F.3d at 1224 (internal quotation marks omitted). 73, ¶ 115) Additionally, Grafstein, Murphy, Newman, Sansone, Main, Mondello, Lewis, Brown, Alexander, Edwards, Lavitt, Morean, Paver and Raymund received stock options dated December 16, 2003, at .75 per share, "the sixth lowest trading price of the month." (Doc.
Brown ("Brown") was appointed executive vice-president in November, 2002. 73, ¶ 190) On December 8, 2006, Jabil announced the Special Review Committee's conclusion that "there is no merit to the allegations in the State Court derivative complaints that Jabil's officers issued themselves backdated stock options or attempted to cause others to issue them." (Doc. The allegations "must `possess enough heft' to set forth `a plausible entitlement to relief.'" Financial Sec. Alleging expiration of the statute of repose and a failure to satisfy pleading requirements, the defendants move to dismiss the claim. The complaint includes no allegation suggesting that before July 30, 2002, the plaintiffs knew of any fact sufficient to prompt a reasonable shareholder to investigate possible wrongdoing. Jabil repeatedly assured investors that the company granted stock options at an exercise price equal to 100 percent of the fair market value of common stock on the day of the grant and that the company applied APB 25. 73, ¶¶ 10-11) A reasonable shareholder had no reason to question the defendants' veracity. Although the complaint contains allegations of false and misleading statements beginning in 1997, any statement, issued on or before September 18, 2001, cannot form the basis of the plaintiffs' section 10(b) claim. 73, ¶ 109) On November 5, 2004, Jabil included the policy representation in the fiscal year 2004 Form 10-K, signed by Alexander, Grafstein, Lavitt, Main, Morean, Murphy, Newman, Raymund, and Sansone. 73, ¶¶ 125-26) However, Grafstein, Murphy, Newman, Sansone, Main, Mondello, Lewis, Brown, Alexander, Edwards, Lavitt, Morean, Paver, and Raymund received stock options dated October 2, 2003, at .14 per share, "the lowest closing price of the month and the second lowest trading price for the remainder of the calendar year." (Doc.
actually had been backdated weeks or months to a date when the stock was trading at a lower price." (Doc.
73, ¶¶ 92, 111) Thus, when exercising an option, the recipient purchases stock at the market price on the day of the grant, rather than the price on the day of purchase. 73, ¶ 4) The plaintiffs allege that the defendants violated the 19 Plans by approving "backdated" stock option grants to directors and officers during the class period. 73, ¶ 5) "`Backdating' is a practice by which a stock option is reported as being granted on one date, but ...
Rapp ("Rapp") served as chief operating officer from 2000 through 2002. 73, ¶ 202) After the plaintiffs instituted the present action, Jabil announced in a Form 8-K filed on March 28, 2007, that Jabil "will record approximately .3 million of aggregate incremental pon-cash stock-related compensation charges for the fiscal years 1996 through August 31, 2005." (Doc. A plaintiff must also satisfy the pleading requirements of Rule 9(b), Federal Rules of Civil Procedure, and the PSLRA. 73, ¶ 115) On October 28, 2005, Jabil included the policy representation in the fiscal year 2005 Form 10-K, signed by Alexander, Grafstein, Lavitt, Main, Morean, Murphy, Newman, Raymund, Sansone, and Walters. 73, ¶ 138) The complaint includes no allegation of the specific dates of suspiciously timed stock option grants in 2005.
Presently, Brodsky & Smith, LLC is investigating certain companies which are either under investigation by the Internal Revenue Service (IRS), Securities and Exchange Commission (SEC) and/or the United States Department of Justice (DOJ), have announced their own internal investigation or where media reports have raised questions regarding this type of conduct.
These companies include: Company Ticker Company Ticker ------- ------ -------- ------ Affiliated Computer Services ACS Medarex MEDX Analog Devices, Inc. ALKS Millennium Pharmaceuticals MLNM Altera ALTR Marvell Technology Group MRVL Applied Micro Circuits Corp. AMKR Maxim Integrated MXIM Asyst ASYT Novellus NVLS Boston Communications Group Inc. PK Brocade Communications BRCD Openwave Systems Inc.
BALA CYNWYD, Pa., June 5, 2006 (PRIMEZONE) -- The law offices of Brodsky & Smith, LLC announces that a lawsuit has been filed against certain officers and directors of United Health Group (NYSE: UNH) relating to allegations that the defendants manipulated the price of certain stock option grants.
The lawsuit contends that such stock option grants allowed the defendant executives to earn millions of dollars that rightfully belong to United Health Group.