Printed from http://www.electronista.com

RIM falls victim to continuing backdating probes

updated 02:00 pm EST, Mon March 5, 2007

RIM backdating scandal

Creators of the ubiquitous BlackBerry, Research In Motion has suffered a double blow as a result of continuing probes into stock backdating. The first is the voluntary resignation of co-CEO Jim Balsillie, who was involved in approving stock grants after the company's IPO in 1997; the second is a planned restatement of finances, which will reach as far back as fiscal 2004 and cut earnings down by $250 million. No other employees are likely to be forced out.

While RIM convened its own committee, the US Securities and Exchange Commission (SEC) has been formally investigating a number of companies for backdating, including the likes of Activision and Dell. The accusation is that executives have been giving artificial dates for their stock options, inflating their value at the cost of the rest of the company. This strategy is not necessarily illegal, but it must be fully disclosed to avoid fraud charges. [via Associated Press]



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Lemur BlueDriver

"Oh no, the check engine light is on…again! What one of the hundreds of reasons could it be this time? Probably going to cost a fort ...

Sponsor

toggle

Most Commented

 
toggle

Popular News