backdating
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SEC charges, settles with RIM executives over backdating issue
Well, it looks like RIM's top executives weren't about to get off the hook after just paying a little fine to the Ontario Securities Commission over that backdated stock options issue, as the US Securities and Exchange Commission is now getting on the act with some charges of its own. In a bit of a twist, however, the SEC has simultaneously announced that it has already reached a settlement with the four top RIM executives in question (co-CEOs Balsillie and Lazaridis, plus Chief Operating Officer Dennis Kavelman and former vice president of finance Angelo Loberto), who have agreed to pay $1.4 million in fines and give back the more than $800,000 they made in profits. No more shakeups on the board, it seems, although there's only so many times you can step down from your position before you start to look silly.
RIM's co-CEO Balsillie stepping down from board as part of backdating settlement
Remember that settlement RIM reached with the Ontario Securities Commission yesterday? Well, details of the arrangement have emerged, and Reuters is reporting that in addition to over $90 million CAD being repaid, the company's co-CEO will be stepping down from its executive board as part of the deal. Jim Balsillie will reportedly have to fork over $5 million CAD (~$4.1 million USD) and his position on the board for at least 12 months -- though we're not sure if he intends to return (or if he'll be welcomed back). [Via BlackBerry Cool]
RIM reaches settlement with Ontario Securities Commission over backdating shenanigans
Gearing up to close another chapter in its tale of cooked books, RIM announced this week that the company and "certain of its officers and directors" have reached a settlement with the Ontario Securities Commission over backdating stock options. Those certain officers are more than likely co-CEOs Jim Balsillie, who also serves as a director, and Mike Lazaridis. Both men were fingered in a report last month that suggested the commission would seek a record-breaking $100 million fine. The deal is still subject to approval by a panel of OSC officials, who are scheduled to meet on Thursday. No word on what penalties they'll incur, but we'd be surprised if RIM didn't manage to skirt at least some of that record-breaking amercement.
Ontario Securities Commission seeks $100 million fine against RIM's co-CEOs
Uh oh. Remember that RIM backdating controversy from 2007? The Ontario Securities Commission sure does, and according to ReportonBusiness, it's seeking a record $100 million Canadian (that's about $79 million US) fine against co-CEOs Jim Balsillie and Mike Lazaridis. If approved, that'll be the largest penalty ever to be paid by individuals to the OSC, with Balsillie expected to pay the bulk of the penalty. As usual, none of the parties involved are commenting on the case, but we reckon this won't be the last we hear about it.[Via Mobile Syrup]
Jobs, other Apple execs settle shareholder backdating lawsuits for $14M
It looks like the Apple options backdating mess is finally drawing to a complete close, as the last of the shareholder derivative suits against Steve Jobs and other Apple execs will reportedly settle for $14M pending the court's final approval on October 31. Apple has also agreed to reform parts of its options plan, but in the end all of this has basically come out to nothing -- particularly since shareholders in a derivative suit sue on behalf of the company, meaning the $14M is being paid by Steve and the other execs' insurance companies back to Apple, which doesn't really need it. Oh well, at least we briefly got FSJ out of it, right?[Via AppleInsider]
Broadcom cofounder Henry Samueli reaches plea agreement, admits he lied to SEC
Broadcom's former management team is still in a heap of trouble over falsified financial statements, but it looks like co-founder Henry Samueli has managed to reach a plea deal with the Feds that'll keep him out of jail -- he's admitted that he misstated Broadcom's finances and knowingly backdated stock options issued to executives, and he'll be fined some $12M plus an additional $250K, as well as serve five years' probation. The court hasn't yet approved the deal, but compared to the "warehouse of meth" antics of Henry T. Nicholas III, Broadcom's other co-founder, a little accounting chicanery seems positively straightlaced, you know?
Another Apple shareholder files backdating lawsuit
After the SEC more or less cleared Apple of those pesky backdating charges and a California court dismissed a shareholder class-action lawsuit accusing the company of improper accounting procedures, it looked like the good times were over, but fear not: another institutional investor has filed suit against Apple alleging the company cooked the books. The Boston Retirement Board filed suit in the Santa Clara County Superior Court, saying that it has investigated the matter and turned up even more evidence, which it can't reveal until the court decides how to handle confidential information. All it will say is that it has proof that "all of Apple's directors were aware of and participated in the backdating scheme," which isn't really new news -- and we're wondering what new information could have turned up that the SEC didn't find in its lengthy, much-watched investigation. Still, it looks like this is the story that won't go away -- anyone ready for some more hot accounting nights?
Steve Jobs subpoenaed by SEC
Remember that whole stock backdating scandal that was threatening to throw a wrench into the unstoppable train that is Apple? Yeah, Apple would prefer you forget about it too, but the SEC (that's the Securities and Exchange Commission) hasn't. They have subpoenaed Steve Jobs to testify in relation to a trail involving Nancy Heinan, Apple's former General Counsel (we covered her involvement here).Keep in mind that no charges are being brought up against Steve, but whenever the CEO of a publicly traded company is brought in front of the SEC it is big news.[via Macuser]
Steve Jobs subpoenaed over stock option backdating
It's not easy being Steve Jobs. When you're not jet-setting around the world, introducing your disappointing EDGE-only iPhone to the European market, you're getting subpoenaed by US securities regulators over a lawsuit concerning stock option backdating. According to reports, El-Jobso has been called in for the US Securities and Exchange's case against former Apple general counsel Nancy Heinen over backdating option grants to Jobs and other executives. Apparently, Heinen is looking for 45 depositions for the case, though the SEC is hoping to limit that to 12 (per party). SEC lawyers are claiming that Heinen and former Apple Chief Financial Officer Fred Anderson (of Elevation Partners fame) backdated more than $20 million in stock options in 2001 for Jobsy, themselves, and other executives. Anderson -- who's already paid $3.5 million in fines -- claims he was given permission by Jobs himself to backdate the options. An internal Apple review claims it found two questionable stock options awarded to Jobs, but found no wrongdoing on his part. For Jobs' sake, let's hope he stays out of the slammer -- a pretty face like that won't last long on the inside.[Thanks, Randall]
Fred Andersen pays fine, says he didn't do it
We've already mentioned that Fred Andersen has agree to pay $3.5 million in fines to SEC in regards to the Apple backdating scandal. However, he is not going quietly into that good night. Mr. Andersen has released a statement (requires a WSJ subscription) which emphasizes that he admits no wrong doing. He goes on to claim that he warned Steve Jobs that if this compensation business wasn't handled correctly there could be some fallout. Jobs assured Fred that it was all on the up and up.I don't think this story will be going away any time soon.
Jobs and Apple not out of the Options scandal woods yet
The Wall Street Journal has the best summary (subscription maybe required) of the Apple options backdating scandal that I have read to date. They take a look at Apple's filings and point that that Steve 'recommended the selection of some favorable grant dates,' though he was not involved in the improper backdating of options which he was granted. The WSJ also talks to a number of experts about what this could mean for Apple and everyone's favorite iCEO.I also found out, thanks to this article, that some options that Pixar granted to employees are also under investigation. Steve didn't receive any of those, but they were all granted while he was CEO of Pixar.Remember folks, just because Apple's internal investigation says that His Steveness has done nothing wrong that doesn't mean that the Feds aren't going to take a look for themselves. This story is far from over.[via Blogging Stocks]
