Dawson, United States District Judge for the District of

Posted On: April 2, 2015

In addition, the Complaint alleges that Alexander and Kreinberg created a slush fund of backdated options by causing options to be granted to fictitious employees and, later, used these options, some of which were made immediately exercisable, to recruit and retain key personnel. The Complaint alleges that as part of the scheme, the former executives made material misrepresentations to Comverse investors regarding Comverse stock option grants and concealed from investors that Comverse had not recorded compensation expenses for option grants. As a result, Comverse materially overstated its net income and earnings per share between 1991 and at least 2002..

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