The options backdating affair at Zoran Corp. (Nasdaq: ZRAN) has taken another turn for the worse. After receiving a notice last month from the US Securities and Exchange Commission (SEC) that its shares could be delisted from Nasdaq, the company now faces a class action suit by shareholders over the false registration of options.
The class action suit was filed in the United States District Court for the Northern District of California on behalf of shareholders who received any or all of Zoran’s definitive proxy statements dated April 30, 1999 through May 1, 2006.
The complaint charges that Zoran and certain of its directors violated Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and Rule 14a-9 promulgated thereunder. More specifically, the action alleges that between July 1998 and September 2001, certain senior Zoran executives were granted unlawfully backdated stock options. The defendants’ grant of those backdated stock options, and their subsequent solicitation of proxies, consent and authorization from Zoran shareholders, violated the Exchange Act.
Shareholders who are members of the class, can request that the court appoint them as lead plaintiffs by no later than sixty days from the date of filing. The case is currently being handled by New York law firm Stull, Stull & Brody, which has 30 years of experience in class action suits.
Published by Globes [online], Israel business news - www.globes.co.il - on August 24, 2006
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