Companies Get Off Cheap In Options Cases: Study

Law360, New York (May 15, 2008, 12:00 AM EDT) -- Corporations facing shareholder litigation over alleged stock option backdating practices may find good news in a study that suggests settlements in backdating actions tend to be lower than those in other investor class actions, possibly because the merits of the backdating cases are weaker.

The working paper, released Thursday by business adviser NERA Economic Consulting, examined the six settlements reached so far in the 37 stock option backdating class actions it identified. Most settled at an average of less than half of what would have been...
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