Clorox To Face Shareholder Derivative Action
The suit alleges that backdating options violates state laws governing executive fiduciary duties, federal laws governing securities and taxation, and even the company’s internal documents.
Moreover, companies that backdate options under-report compensation expenses and receive lower payments, the suit said.
“[It] permits directors, officers and/or executives to unjustifiably reap millions and billions of dollars which should be disgorged and returned to the corporate coffers thereby contributing to...
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