Comverse Technology Inc. (Pink Sheets: CMVT.PK) said that it has settled the options backdating case brought against it by the US Securities and Exchange Commission (SEC).
Comverse neither admitted nor denied the SEC's allegations, and no monetary penalties were assessed against the company.
The settlement covers the SEC's claims of improper backdating of stock options and other accounting practices, such as the improper establishment, maintenance, and release of reserves, the reclassification of certain expenses, and the calculation of backlog of sales orders.
Comverse consented to the entry of a final judgment under which it will be subject to a permanent injunction against any future violations of the federal securities laws. It was ordered to complete its financial reports by February 8, 2010 or, if earlier, the date on which the company becomes current in its SEC reporting obligations.
Comverse explained that "these matters were the result of actions principally taken by senior executives of the company who were discharged in 2006. The company self-reported these matters to the SEC and has cooperated fully with the SEC and United States Department of Justice."
Subject to the approval of the settlement by the United States District Court for the Eastern District of New York, the settlement concludes the SEC's civil action against the company in connection with these subject matters.
Comverse shares rose 7.9% on Thursday, and rose a further 5.5% on Friday.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2009
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