Costco Sued For Backdating Stock Options

Law360, New York (October 1, 2008, 12:00 AM EDT) -- Costco Wholesale Corp., its top-level executives and its board of directors face a lawsuit claiming that the company lost hundreds of millions of dollars to a stock option backdating scheme that lasted for nearly a decade.

The suit, filed in the U.S. District Court for the Western District of Washington by the Pirelli Armstrong Tire Corp. Retiree Medical Benefits Trust, claims that executives and the board conspired in a backdating scheme from at least 1997 through at least 2005 that underreported executive and board compensation to...
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