Options Scandal Has Cost Billions: Study

Law360, New York (October 25, 2006, 12:00 AM EDT) -- The stock options backdating scandal has already cost companies more than $10 billion, according to a report released Monday by a financial advisory firm.

A Trend Alert issued by Glass Lewis & Co. showed that the 152 companies being investigated in some way for options backdating have lost $5.1 billion in share price declines and $5.2 billion in pre-tax compensation expenses.

Thus far, 145 companies have announced internal investigations, 91 have announced Securities and Exchange Commission investigations, 55 have announced Justice Department investigations and 67 have...
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