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Options Backdating Fallout Could Widen: Study

Law360 (October 30, 2006, 12:00 AM EST) -- Sarbanes-Oxley reforms have not stopped companies from illegally backdating options, mostly because the U.S. Securities and Exchange Commission has failed to enforce them, according to a report a report recently released by a financial advisory firm.

A trend alert issued by Glass Lewis & Co. disclosed hundreds of late Form 4 disclosures of stock options grants, in which a company's stock price materially increased from the reported grant date to the disclosure date.

At the same time, the SEC brought no enforcement actions from 2001 to...
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