Share on LinkedInShare on LinkedIn

ARTICLE · 13 NOVEMBER 2006

Will Stock Options Backdating Scandals Come To Canada?

Torys
Torys
Contributor
Torys

Torys

Torys LLP is an international business law firm that works with clients who expect the best advice...

View firm profile
Explore more from Torys

The scandals surrounding the backdating of stock options continue to mount in the United States. In testimony before the Senate Committee on Finance, the director of the Division of Enforcement of the U.S. Securities and Exchange Commission (SEC) revealed that as of September, this division was investigating over 100 companies for possible fraudulent reporting of stock option grants.

CanadaCriminal Law
Nadine Côté
Nadine Côté
Author LinkedIn connections

Originally published in The Lawyers Weekly, November 2006

The scandals surrounding the backdating of stock options continue to mount in the United States. In testimony before the Senate Committee on Finance, the director of the Division of Enforcement of the U.S. Securities and Exchange Commission (SEC) revealed that as of September, this division was investigating over 100 companies for possible fraudulent reporting of stock option grants. The Justice Department has also laid criminal charges against several companies, and the Internal Revenue Service has served subpoenas on these companies and their executives. Businesses under investigation include Fortune 500 companies and smaller cap issuers, with news headlines naming prominent businesses and their leaders at Home Depot Inc., Microsoft Corporation and Apple Computer Inc.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Bill C-29 And Canada’s Proposed Financial Crimes Agency: What You Need To Know

Canada is poised to establish its first dedicated Financial Crimes Agency through Bill C-29, a legislative initiative that promises to reshape the country's approach to investigating and prosecuting financial offenses. The proposed agency would operate with broad investigative powers and a sweeping mandate covering everything from money laundering to digital asset crimes, backed by $352.7 million in federal funding over five years. With the authority to create its own specialized police force and coordinate
CanadaCriminal Law
McCarthy Tétrault
McCarthy Tétrault
Article

Lawyer Receives 6-Month Suspension For Misuse Of Artificial Intelligence (Law Society Of Ontario v. Lee)

The misuse of artificial intelligence by litigants and lawyers continues to be alarming. Although it is well-documented that generative artificial intelligence platforms have a tendency to produce inaccurate answers to legal questions, and, moreover, to produce output which references non-existing cases or which inaccurately portrays legal propositions in existing cases, these tools continue to be used recklessly.
CanadaCriminal Law
Gardiner Roberts LLP
Gardiner Roberts LLP
Article

Ontario Confirms That Direct Participation In Civil Fraud Is An Independent Ground For Personal Liability

The Ontario Court of Appeal recently upheld a landmark decision establishing that corporate officers and directors can be held personally liable for civil fraud when they directly participate in making fraudulent representations. The case arose from a COVID-19 pandemic mask supply contract where an officer recklessly represented his company could deliver three million NIOSH-certified N95 masks to a hospital without having secured any such supply.
CanadaCriminal Law
DMG Advocates
DMG Advocates
Article

Ontario Invites Expressions Of Interest For Licences Under The Geologic Carbon Storage Act

Ontario has launched its first call for expressions of interest in carbon capture and storage licences under the new Geologic Carbon Storage Act, targeting Crown-owned pore space beneath lakebeds surrounding the Ontario Peninsula. The detailed submission requirements reveal expectations that proponents have advanced well beyond initial planning stages, with the process serving as a critical test of Ontario's emerging CCS framework and its attractiveness to industry.
CanadaEnvironment
Torys
Torys
Article

Government Of Canada Makes Significant Changes To Energy Project Approvals Process

On September 3, the Government of Canada published amendments removing seven types of energy projects from the Physical Activities Regulations (the Project List) under the Impact Assessment Act (IAA). As a result, these types of projects will no longer be subject to the IAA but will continue to be regulated by the Canada Energy Regulator Act (CER Act) or applicable provincial environmental assessment regimes.
CanadaEnergy and Natural Resources
Torys
Torys
Article

New Flight Path: Canada Seeks Private Investment In Airports Through Long-term Concession Arrangements

Canada has announced plans to attract private investment through long-term concessions to operate its four largest airports: Toronto-Pearson, Vancouver International, Montréal-Trudeau, and Calgary International. The federal government will retain ownership of the underlying airport land and assets while seeking tens of billions of dollars in private capital to be reinvested in regional airports and local transport infrastructure. Key details regarding the scope of private operational involvement, award
CanadaGovernment, Public Sector
Torys
Torys