Option backdating settlement
The government’s allegations against Samueli, “if true, warrant a significant prison sentence,” U. District Judge Cormac Carney reportedly wrote in an order delivered to Samueli, his attorneys, and prosecutors at a hearing in a Santa Ana courtroom.The Times noted that under the terms of the plea agreement, the judge could only accept or reject the recommended sentence, not modify it.KPMG’s recent .5 million settlement of Vitesse’s own lawsuit is in addition to KPMG’s separate .750 million contribution to the settlement of the securities class action lawsuit.As I recently noted (here), the options backdating securities class action lawsuits themselves appear to be winding down, but until word circulated of KPMG’s settlement with Vitesse, I had not heard of the resolution of any cases that companies themselves had filed against their outside professional advisors.He is accused of filing false statements with the SEC, committing wire fraud, and falsely certifying financial reports. Nicholas pleaded not guilty to 25 counts contained in two indictments unsealed June 5.
According to the Times, the judge was particularly irked by a provision in the plea deal that called for Samueli to pay million to the government.
The settlement also included the transfer of shares of Vitesse stock from Vitesse and from the individual defendants.
The plaintiffs in the options backdating securities lawsuit had also sued KPMG and as reflected here, on June 16, 2008, the parties to the securities lawsuit filed a stipulation of settlement in which KPMG agreed to contribute .750 million toward the class settlement.
The nation’s largest pension fund said the settlement with Mc Guire, which is subject to approval by the United States District Court in Minnesota, is the largest cash recovery ever obtained from an individual defendant in a securities class-action lawsuit.
The proposed settlement also provides for an additional payment of 0,000 by United Health’s former general counsel.