MRV Can't Stay Shareholder Suit Over Backdated Options

Law360, New York (December 22, 2011, 8:53 PM EST) -- A California federal judge on Thursday denied MRV Communications Inc.'s request to stay a consolidated suit by shareholders accusing the optical-components supplier of secretly backdating options to its directors to boost their compensation.

U.S. District Judge Gary Allen Feess refused to stay the proceedings while MRV’s special litigation committee investigates whether to pursue the suit, siding with the plaintiffs’ argument that they have spent more than three years prosecuting the case and that MRV has waited that period to seek the stay.

The plaintiffs in the...
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