Novell’s Board, Top Execs Hit With Backdating Suit

Law360, New York (October 17, 2006, 12:00 AM EDT) -- A shareholder is taking aim at Novell Inc.’s senior executives and board of directors, alleging in a federal lawsuit that they allowed senior insiders at the software company to divert hundreds of millions of dollars in corporate assets to themselves by manipulating stock option grant dates.

The shareholder derivative lawsuit, filed Friday in the U.S. District Court for the District of Massachusetts, accuses the defendants of masterminding a stock option backdating scheme from 1999 to the present that caused Novell to file false and misleading statements,...
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