Insurers Eye Backdating Scandal

Law360, New York (January 10, 2007, 12:00 AM EST) -- The ever-widening stock options backdating scandal has become a major issue not only for companies and their executives, but also for insurers, many of which have identified options cases as a major source of claims for the upcoming year.

Companies have already started cashing in on directors’ and officers’ insurance policies, and as more companies are affected, there could be significant consequences for insurers.

“To date, DOJ and the SEC have announced more than 120 investigations and numerous shareholder suits have been filed,” said Ballard Spahr...
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