Backdating, Restatement Trigger Sepracor Suit

Law360, New York (October 19, 2006, 12:00 AM EDT) -- Pharmaceutical company Sepracor Inc. and its board of directors have been named in a shareholder derivative lawsuit for allegedly allowing stock options backdating to enrich the firm’s top dogs at the expense of stockholders.

The complaint singles out the company’s chief executive officer and board chair, Timothy J. Barberich, for allegedly failing to adequately investigate whether or not the backdating practices were improper.

As a result of the widespread backdating scheme, Sepracor in September restated its earnings for 2003 through 2006, adding about $43.3 million in...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.