It is unclear whether Deloitte, as Comverse’s auditor, will be held liable for any damages related to the suit.
However, the idea of suing or calling into question the work of a third party — such as an independent auditor — that is not directly connected to the alleged fraud may be gaining steam.
We've told you about things you cared about, and helped you feel more in touch with the world. Thank you for being on the other end of that glowing screen.Thus, backdating can be misleading to shareholders in the sense that it results in option grants that are more favorable than the shareholders approved in adopting the stock option plan.Clearly, the Enron trials have not closed the book on corporate fraud.In addition, the investor suit accused Alexander and Kreinberg of funneling some of the backdated options into a hidden “slush fund” from which they then granted options to several Comverse employees.Menorah Group is charging that the slush fund dates back to 1996, and was used up until November of 2006 when the scheme was uncovered.
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