With the KB Home case, prosecutors hope to improve their dismal trial record in stock-options backdating cases. Of the five cases that have gone to trial, one ended in acquittal, one collapsed, and one of the three convictions was reversed. Prosecutors are focusing the case on CEO Bruce Karatz's profit from the backdated options. It's a relatively new strategy that emerged last month in the government's retrial of former Brocade CEO Gregory Reyes, whose prior conviction was reversed on appeal.
Prosecution in KB Home Backdating Case Takes a New Tack: Personal Gain
The National Law Journal
March 8, 2010