Even though the the scandal moved into the realm of history several years ago, there was one small but important unresolved item.
A very long ten years ago – before the financial crisis, before the Euro crisis, before the Brexit vote — there was the options backdating scandal.The wave of litigation the scandal stirred up took its time to work its way through the system, but eventually the litigation was resolved and the scandal moved into the past.As Bruce Carton also noted in his August 25, 2016 Compliance Week post about Alexander’s return (here), Alexander also reportedly paid for 200 guests to fly from New York and Israel for his son’s Bar Mitvah.While Alexander remained safely ensconced in his Namibian hideaway, the government’s prosecution of other Comverse executives went on.Alexander resolved the enforcement action that the SEC filed against him by agreeing to pay .6 million to the agency, inclusive of a million penalty.
In addition, the securities class action lawsuit that investors filed against the company and its directors and officers was settled in December 2009 for 5 million, inclusive of a million contribution from Alexander.
Windhoek (pronounced “Vind-hook”), Namibia’s capital, where Alexander reportedly was living, has about 230,000 people, and has a semi-desert climate.
Minimum temperatures rarely fall below 40 degrees F. I thought of Alexander again, just a short time ago.
The bulk of the derivative lawsuit settlement consists of the previously disclosed agreement of Comverse’s former CEO Kobi Alexander to pay Comverse million to be applied to the class action lawsuit settlement.
The derivative lawsuit stipulation of settlement (which can be found here), is dated December 17, 2009, the same day as the class action lawsuit settlement was announced.
According to , Namibia is about half the size of Alaska, but is one of the most sparsely populated countries on earth.