ScanSource, a company that makes barcode scanners, can add itself to the list of companies caught up in the options backdating scandal.
On Nov. 21, 2006, Mark Wenham, a shareholder of the South Carolina company, filed suit in the U.S. District Court for the District of South Carolina, accusing company officials of backdating stock option grants to coincide with dips in share price.
“ScanSource has sustained millions of dollars in damages, and ScanSource’s CEO and President, Michael L. Bauer … have garnered millions of dollars in unlawful profits,” the complaint states.
This issue came to light after the Charlotte Observer published an article on Oct. 8, 2006, titled “Suspicious timing: Stock options pad execs’ perks,” which highlighted numerous stock grants made at the most lucrative moments for ScanSource executives.
The company launched an internal investigation in October 2006 following the article. On Nov. 8 the company’s executive vice president of investor relations resigned after declining to cooperate with the investigation.
The suit seeks a jury trial.