That means the company incurs an expense equal to the difference in the share price between the two dates.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.Jasper signed all of Maxim’s filings with the SEC at that time.
“It falls on them because the statements were materially false at a time they were representing those statements were accurate,” says Mark Fickes, partner at Braun Hagey & Borden and former lead trial counsel for the SEC in the Maxim/Jasper trial.
The allegations of illicit sex, drugs, and rock and roll reminded me of the 60s ... Sure, Broadcom had to take a .2 billion charge to fix the accounting mess left by the company's former executives.
But how does that relate to hiring prostitutes and drugging customers without their knowledge?
You'd think they'd be up to their eyeballs in rope.
I count no fewer than 38 top executives at 19 high-tech companies that have bit the dust over this stuff.
Professor Lie concluded that the robust profitability of so many options was statistically impossible absent some artificial influence such as backdating.