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

Advertisement

Recent Reviews

Seagate Wireless

It seems like no matter how much internal storage is included today's mobile devices, we, as users, will always find a way to fill the ...

Lenovo Yoga Tablet 2 (Android, 10.1-inch)

Lenovo is building a bigger name for itself year after year, including its devices expanding beyond desktop computers. The company's l ...

Brother HL-L8250CDN Color Laser Printer

When it comes to selecting a printer, the process is not exactly something most people put a lot of thought into. Printers are often t ...

Advertisement

toggle

Most Commented

 
toggle

Popular News