Options Scandal Has Cost Billions: Study

Law360, New York (October 25, 2006, 12:00 AM EDT) -- The stock options backdating scandal has already cost companies more than $10 billion, according to a report released Monday by a financial advisory firm.

A Trend Alert issued by Glass Lewis & Co. showed that the 152 companies being investigated in some way for options backdating have lost $5.1 billion in share price declines and $5.2 billion in pre-tax compensation expenses.

Thus far, 145 companies have announced internal investigations, 91 have announced Securities and Exchange Commission investigations, 55 have announced Justice Department investigations and 67 have...
To view the full article, register now.