ACS, SEC Settle $51M Options Backdating Suit

Law360 (September 10, 2010, 4:34 PM EDT) -- The U.S. Securities and Exchange Commission and Affiliated Computer Services Inc. have settled a suit alleging the company awarded $51 million worth of options backdating grants over an 11-year period without adequately disclosing them.

ACS consented to a permanent injunction prohibiting violations of Securities Act Section 17(a) and Securities Exchange Act sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B), which together address unlawful business practices and reporting errors, the SEC said Thursday.

In settling, ACS neither confirmed nor denied the allegations made by the SEC.

The suit accused ACS of keeping inadequate internal controls regarding its stock option compensation and failing to maintain...

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