The SEC’s focus on options backdating cases has, by its own admission, diminished greatly. Indeed, the SEC’s San Francisco Regional Office, which had been leading that charge, stated in November 2008 that it had brought the final options backdating case that it expected to file. In the home office in D.C., however, it appears that there are still some cases winding their way through the pipeline.
The SEC announced today that it filed a settled civil action against video game company Take-Two Interactive Software, Inc. The SEC complaint alleges that over a seven year period, Take-Two defrauded investors by granting backdated, undisclosed “in the money” stock options to officers, directors, and key employees while failing to record required non-cash charges for option-related compensation expenses.
