Judge Throws Out Ditech Derivative Case

Law360, New York (July 16, 2007, 12:00 AM EDT) -- A judge has chucked a shareholder derivative action that accused Ditech Networks Inc.’s directors and officers of improperly backdating stock options, finding that the plaintiffs failed to be specific in their securities fraud claims.

Judge Jeremy Fogel dismissed the complaint for failure to state a claim on Monday and gave the shareholders 30 days to amend their complaint to the U.S. District Court for the Northern District of California.

“Many explanations other than options backdating exist for the coincidence of the grants and a low share...
To view the full article, register now.