KB Home In Shakedown Over Options Backdating

Law360, New York (November 13, 2006, 12:00 AM EST) -- The nation's fifth-largest home builder found itself in troubled waters on Sunday after an internal investigation revealed errors in the company's accounting of stock option grants, prompting its chairman and chief executive to become the latest high-ranking official of a publicly-traded company to step down amid the widening scandal over stock-options backdating.

KB Home said in a statement on Nov. 12 that CEO Bruce Karatz and Richard Hirst, executive vice president and chief legal officer, had resigned, while Gary Ray, the head of human resources, had...
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