No Way: SEC Nails Backdaters at HCC Insurance
Think the SEC is asleep at the wheel?
No way, Jose:
HCC Insurance Holdings Inc. (HCC-NYSE) has reached a settlement with federal regulators over a lengthy investigation into how the company granted stock options to key executives.
While neither admitting nor denying allegations in the complaint by the U.S. Securities and Exchange Commission, Houston-based HCC (NYSE: HCC) said it has consented to the entry of a permanent injunction against future violations of securities laws.
A separate settlement of class-action litigation relating to the stock options practices was approved in federal court July 17. The terms of that deal, announced in February, include a $10 million payment into a settlement fund.
“The SEC settlement, together with the federal court’s recent final order disposing of the class-action litigation, completely and finally resolves the company’s stock option issue,” said Frank Bramanti, HCC chief executive.
Stephen Way, former chief executive, and General Counsel Chris Martin abruptly resigned in November 2006 after an internal probe discovered irregularities in the dating of some stock options. Bramanti took over from Way at that time. Houston Business Journal
Not my name, but this was in a portfolio I team managed back in the day. Glad to see justice done.
Lots of others got off the hook, however. I would hope to see more of this, particularly with those pirate of Silicon Valley.
HCC reaches deal with SEC over options probe
Houston Business Journal
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