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Lawyer Article

Option Grant Practices Come Under Even Greater Scrutiny As SEC Acts To Address Option Backdating Issue

July 31, 2006

Michael Gunter, Jane Jeffries Jones

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Republished in the August 1, 2006 issue of Southeast Tech Wire.

The option backdating controversy has heated up even more in the past week, as (i) the SEC and the U.S. Attorney's Office filed the first criminal actions involving option backdating practices against former Brocade Communications Systems, Inc. executives and (ii) the SEC included new option grant practice disclosure requirements when it adopted the final executive compensation disclosure rules yesterday. Companies that have not done so should promptly undertake a review of their stock award grant practices to be sure that they are in compliance with applicable laws, and in particular that such practices are properly reported and accounted for.

Follow this link to access our client memorandum describing the SEC's recent actions and the option grant practices controversy in general.

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