Rim backdating stock
called the settlement "a good-news story for RIM," noting that the company has put the options matter behind it with no significant damage, and can move forward, having settled all the legal issues.
Balsillie and Lazaridis consented to the entry of an order permanently enjoining them from violating certain antifraud provisions (specifically Sections 17(a)(2) and (3) of the Securities Act of 1933), and the internal controls and books and records provisions and from aiding and abetting RIM's violations of the reporting, books and records and internal controls provisions of the federal securities laws.Kavelman wrote, "FYI, it is a major breach of protocol to be discussing (and documenting via email) using option pricing other than that allowable by the Ontario Securities Commission and the SEC in the US." The complaint further alleges that after all four executives were aware of backdating issues that had come to light at other companies, they attended RIM's July 2006 annual shareholder meeting where Kavelman misled investors by denying that RIM was backdating options.All defendants have agreed to settle this matter, without admitting or denying the allegations in the SEC's complaint, on the following terms: RIM consented to the entry of an order permanently enjoining it from violating the antifraud, reporting, books and records and internal controls provisions of the federal securities laws."This enforcement action underscores the SEC's resolve to assure full and accurate disclosure to U. investors by foreign issuers." Antonia Chion, Associate Director of the SEC's Division of Enforcement, added, "Companies and executives who attempt to conceal their fraudulent conduct from investors and regulators will be held accountable." The SEC's complaint alleges that RIM and its execs made false and misleading disclosures about how RIM priced and accounted for options.In addition, according to the complaint, the backdating violated the terms of RIM's stock option plan and a listing requirement of the Toronto Stock Exchange. and four employees, outlining new allegations about how the company backdated stock options and how two executives hid the scheme from its auditors and outside lawyers.
Securities and Exchange Commission unveiled a settlement yesterday with Research In Motion Ltd.
The SEC said the Black Berry maker and its executives - including co-chief executive officers Jim Balsillie and Mike Lazaridis - backdated option grants representing almost seven million RIM shares between 19.
The company and the four accused have agreed to settle the SEC case by paying penalties totalling $1.425-million (U. They have not admitted or denied any of the allegations levelled by the regulator.
The settlements come just two weeks after RIM and the same executives reached settlements with the OSC, agreeing to pay $77-million (Canadian).
Technology analyst Carmi Levy at AR Communications Inc.
Their disgorgement will be deemed satisfied by their previous payment of these amounts to RIM. 5, 2009, the Ontario Securities Commission brought a related settled action against RIM, Balsillie, Lazaridis, Kavelman, Loberto and certain other directors which included the total payment in Canadian dollars of $76.85 million and other sanctions.