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Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Sunday, March 17, 2013

Former Mercury GC Settles Options Backdating Charges

Some of the SEC's cases involving options backdating have lingered on for years.  One of them, involving the former General Counsel at Mercury Interactive, has finally come to an end.  Susan Skaer consented to the entry of a permanent injunction and will pay $628,037 in disgorgement and prejudgment interest, representing the "in-the-money" benefit from her exercise of backdated option grants, and a $225,000 civil penalty. The settlement is subject to the approval of the United States District Court for the Northern District of California.

On May 31, 2007, the Commission charged three other former senior Mercury officers and Skaer with perpetrating a scheme from 1997 to 2005 to award Mercury executives and other employees undisclosed, secret compensation by backdating stock option grants and failing to record hundreds of millions of dollars of compensation expense. The Commission's Complaint also alleged other misconduct by Skaer related to the award of stock options to Mercury executives and employees.

The settlement with Skaer, if approved, will conclude the litigation.

http://lawprofessors.typepad.com/securities/2013/03/former-mercury-gc-settles-options-backdating-charges.html

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