Mercury interactive backdating
Following extensive motion practice in late 2006 and early 2007, Labaton Sucharow entered into negotiations with Hewlett-Packard as successor-in-interest to Mercury (following a late 2006 merger).
Still grappling with the fallout from a boardroom spying scandal, Hewlett-Packard Co. is paying .5 billion to buy Mercury Interactive Corp., a maker of business management software that has been entangled in a stock options scandal for the last nine months.
On May 31, 2007, the Commission charged three other former senior Mercury officers and Skaer with perpetrating a scheme from 1997 to 2005 to award Mercury executives and other employees undisclosed, secret compensation by backdating stock option grants and failing to record hundreds of millions of dollars of compensation expense.
SECURITIES AND EXCHANGE COMMISSION Susan Skaer, former General Counsel of Mercury Interactive Corporation, to be Permanently Enjoined and to Pay Civil Penalties and Disgorgement, and to be Barred from Practicing or Appearing as an Attorney Before the Commission The Securities and Exchange Commission today settled civil fraud charges against Susan Skaer, the former General Counsel and Secretary of Mercury Interactive Corporation (Mercury), arising from an alleged scheme to backdate stock option grants and from other alleged misconduct.
* Sunnyvale, Calif.-based Mercury Interactive Corp., whose software tests computer programs, bought closely held Performant Inc.
of Bellevue, Wash., for .5 million to add products that find errors in the Java format for writing Internet programs.
The Commission's Complaint also alleged other misconduct by Skaer related to the award of stock options to Mercury executives and employees.