Former employees of Comverse Technology Inc. (Pink Sheets: CMVT) and subsidiary Verint Systems Inc. (Pink Sheets: VRNT) have filed a lawsuit against the companies with the Tel Aviv District Court and asked for it to be recognized as a class-action suit.
The petitioners are suing for damages due to their inability to exercise options granted them in their labor contracts with the companies.
The petitioners, Roni Katriel and Orit Deutsch, claim that, in March 2006, after the serious flaws were discovered in Comverse's financial reports, which led to criminal indictments against company executives by the US Department of Justice, the company froze its employee stock option plan.
The petitioners claim that Comverse and Verint still have not submitted corrected financial reports, and the stock option plans are still frozen. They argue that the companies should compensate them for the resulting damage.
Comverse has not yet filed a statement of defense.
Published by Globes [online], Israel business news - www.globes-online.com - on March 26, 2009
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