Companies Implicated in Options Backdating Class Action Lawsuits

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 |  Includes: AMT, BRCD, BRKS, CMVT, JNPR, KLAC, MERQ, RMBS, SFNT, UNH, VTSS
by: Unknown Professor

Securities Litigation watch has been keeping a list of firms that have been hit with securities class action lawsuits. Here's what they have on the list so far:

* American Tower Corp (NYSE:AMT)
* Brocade Communications Systems (NASDAQ:BRCD)
* Brooks Automation, Inc (NASDAQ:BRKS)
* Comverse Technology, Inc. (NASDAQ:CMVT)
* Juniper Networks, Inc. (NYSE:JNPR)
* KLA-Tencor Corp. (NASDAQ:KLAC)
* Mercury Interactive Corp. (MERQ)
* Rambus, Inc. (NASDAQ:RMBS)
* Safenet, Inc. (SFNT)
* UnitedHealth Group, Inc. (NYSE:UNH)
* Vitesse Semiconductor Corp. (NASDAQ:VTSS)

Bookmark the list - I'm sure it'll grow quickly.

I'm actually surprised that the list is so small. At a recent conference, I was talking to a friend of mine who's done quite a bit of corporate governance work. He said he's met a number of securities class-action lawyers. A couple of them would file preemptive lawsuits as soon as a firm's stock price dropped by a certain amount. I doubt they're representative of the legal profession as a whole. Or at least I hope not - my friend described them as the ambulance chasers of the securities class action world -- complete with flashy jewelry and all the trappings!

But if they are, I'd expect the postdating-related floodgates to open wide in the next couple of months.

Related piece: WSJ Options Scandal Scorecard.