Divesh Sharma, a professor at Kennesaw State University whose research focuses on company clawback policies, told Market Watch that, until 2006, few companies had them.
“In 2003, there were only four, by my count,” he said. Suddenly in 2006, I counted 150.” According to Sharma, Wells Fargo had no policy until 2008. Bush signed the Emergency Economic Stabilization Act, which established the Troubled Asset Relief Program to bail out big banks battered by the financial crisis.
Note: Many of our articles have direct quotes from sources you can cite, within the Wikipedia article! In 2006, Comverse was involved in an options backdating scandal.
Founded in 1982, the company focuses on providing value added services to telecommunication service providers, in particular to mobile network operators.
It is unclear whether Deloitte, as Comverse’s auditor, will be held liable for any damages related to the suit.
However, the idea of suing or calling into question the work of a third party — such as an independent auditor — that is not directly connected to the alleged fraud may be gaining steam.
Ex-CEO Jacob Alexander, was classified a wanted fugitive in August 2006 by the US Federal Bureau of Investigation.
Deloitte has been Comverse’s independent auditor since 1994.
In an e-mail response to CFO.com, Deloitte officials commented: “These are meritless claims filed by one individual who has already plead[ed] guilty to federal criminal charges and by another who has fled to Namibia to try to escape the American criminal justice system.
Mc Guire’s case, for undeserved gains obtained by falsely dating his grants to maximize his profit, was the most egregious of all the stock-option-backdating suits.
The SEC used the power of the new law in 2007 to claw back 8 million in profits from the scheme and a total of 0 million after additional penalties and interest.