Despite the company's claims that no executive knowingly benefited from the backdating of stock options, federal prosecutors are mulling whether to bring criminal charges against former Apple
executives. Apple, Internet security company McAfee, Broadcom Corp., KLA-Tencor Corp., defense contractor Engineered Support Systems Inc, have all been told of a likely charge by U.S.
authorities.
In all, more than 170 companies have been investigated by U.S. authorities or have conducted internal inquiries into the manipulation of option grant dates, a practice
that often artificially inflates company stock prices. When an executive exercises an options grant, but backdates it to a time when the share price was lower, he or she instantly profits from the
difference.
On Thursday, the former general counsel of Web job giant Monster Worldwide pleaded guilty to conspiracy and securities fraud related to options backdating. On Wednesday, the former
CEO of Take Two Interactive Software, publisher of the popular video game series "Grand Theft Auto" pled guilty to the same charges.
Read the whole story at The Wall Street Journal »