The SEC has recently concluded stock option backdating investigations with a number of companies, notably technology companies such as Zoran and NVIDIA, leading to speculation that enforcement momentum in the stock option backdating scandal may be waning.
Not to worry. As the SEC Investigation Disclosure section of SM Litigator reports, there are still misdeeds aplenty (or allegations thereof) for the SEC to investigate. Consider direct mailing mega mogul, infoUSA, which reported yesterday that the SEC had launched a preliminary investigation concerning related party transactions, the reimbursement of expenses, other corporate expenditures and specific trading in the Company’s securities.
infoUSA is a company that cannot stay out of the limelight. In the past six months, reports of abusive sales practices involving elderly Americans culled from its mailing lists, jobs outsourced to India, and campaign finance ties of CEO Vinod Gupta to the Clintons, have led the company to reserve a significant slice of its home page for defenses of its practices, including praise from Bill Clinton in his new book, Giving.