Cornerstone Research has been at the vanguard of this issue, assisting clients in responding to a number of SEC investigations and civil suits.
In recent years government enforcement agencies have investigated the timing of stock option grants. Cornerstone Research has been at the vanguard of this issue, assisting clients in responding to a number of SEC investigations and civil suits. We determine the value of grants conveyed to option holders and participate in our clients’ discussions with the government regarding these findings. Cornerstone Research also analyzes what, if any, impact the alleged wrongdoing has on shareholders and whether the alleged financial misstatements stemming from options backdating inflate companies’ stock prices. We also analyze what, if any, losses shareholders suffer due to revelations of options backdating issues, and whether any such losses are caused by revelation of the alleged financial misstatements per se as opposed to revelation of potential collateral damage stemming from backdating allegations (for example, investigation costs, management turnover and distraction, delayed SEC filings, and potential delisting).