ESSI Exec Not Liable For Backdated Options: 8th Circ.

Law360, Wilmington (July 19, 2011, 8:46 PM EDT) -- The Eighth Circuit on Tuesday upheld the dismissal of a securities suit attempting to hold a former Engineered Support Systems Inc. director liable for a disclosure violation concerning backdated stock options issued to executives.

The appeals court agreed with the district court that the U.S. Securities and Exchange Commission provided little evidence that ESSI Outside Director Michael Shanahan Jr.'s approval of the options contradicted company representations and constituted material misstatements or omissions in connection with the sale of securities.

The case came to the appeals court...
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