SEC, Insurance Co. Settle Options Backdating Suit

Law360, New York (July 22, 2008, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission has settled with HCC Insurance Holdings Inc. and two executives over options backdating that allegedly spared the company more than $26 million in compensation expenses.

The complaint, lodged in the U.S. District Court for the Southern District of Texas, alleges former HCC CEO Stephen L. Way and former General Counsel Christopher L. Martin backdated stock option grants on as many as 58 occasions between 1997 and 2005.

Without admitting or denying the allegations, all three defendants agreed to settle the...
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