Read The Recorder‘s roundup of the stock-option backdating scandal. There won’t be a test later … but there might be a subpoena.
An internal review of Verisign’s granting practices, which was led by Cleary Gottlieb Steen & Hamilton, found evidence of backdating, including grants that were given to the CEO and CFO. In a regulatory filing this summer, the company spread the blame around. “The human resources, accounting, and legal departments failed to implement appropriate processes and controls,” it said.
Verisign announced in June 2006 that it had received a grand jury subpoena from the U.S. attorney’s office seeking documents relating to stock granting practices. The company received a formal request for information from the SEC in February 2007, according to regulatory filings.
The company did not return a call seeking comment Thursday, and a lawyer with the U.S. attorney’s office declined to comment about the status of its investigation.
