Law firms representing shareholders of Comverse Technology have reached a $62M settlement

December 28, 2009

1 Min Read

NEW YORK -- Law firms representing shareholders of Comverse Technology have reached a $62 million settlement stemming from alleged stock option backdating practices by former directors and officers of the communications technology company, including Comverse's former CEO Jacob "Kobi" Alexander.

The settlement was announced by the firms Milberg LLP and Barroway Topaz Kessler Meltzer & Check, LLP, representing derivative plaintiffs in New York State Supreme Court, and Bernstein Litowitz, representing derivative plaintiffs in an action pending in the U.S. District Court for the Eastern District of New York. In addition to obtaining payments in excess of $62 million, Comverse agreed to undertake significant corporate governance reforms.

The bulk of the settlement, $60 million, will be paid to Comverse by Mr. Alexander, who fled to Namibia in 2006 to avoid federal fraud charges related to the options backdating scheme. His contribution will substantially assist Comverse in funding a $225 million class action settlement announced earlier this month.

Comverse Technology Inc. (Nasdaq: CMVT)

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