By Anne Urda

Law360, New York (January 09, 2008, 12:00 AM ET) -- A year ago, the options backdating scandal was on the tip of everyone's tongue, but 12 months later the frenzy appears to have died down, with regulators routinely closing investigations and judges now frequently tossing out shareholder derivative suits surrounding the questionable practice.

The U.S. Securities and Exchange Commission's investigation into options backdating first exploded in 2006, beginning with a probe into compensation practices at Silicon Valley chip makers.

Initially, the SEC focused on timing stock-option grants to benefit from positive corporate news that would drive...