NY Court Revives Shareholder Suit V. Comverse

Law360, New York (October 7, 2008, 12:00 AM EDT) -- Internal attempts by telecom company Comverse Inc. bosses to rectify illegal options backdating practices were not sufficient to head off a shareholder lawsuit, a New York appeals court ruled on Tuesday.

The Appellate Division of the New York State Supreme Court reversed a lower court's dismissal of a derivative shareholder lawsuit and ordered a state trial court to reinstate the case.

"The picture painted in the complaint is that of a special committee taking a tepid rather than a vigorous approach to the misconduct and the...
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