Cablevision settles options practices lawsuits

17 hours ago

NEW YORK (AP) — Cablevision Systems Corp. will be getting $34.4
million in settling lawsuits stemming from a review of its stock
options practices, the cable TV company disclosed in a regulatory
filing Thursday.

Under terms of the agreement, certain present
and former directors and executives will pay Cablevision $24.4 million.
Additionally, Cablevision's liability insurer has agreed to pay the New
York-based company $10 million.

Cablevision has agreed to adopt corporate governance changes relating to stock-based compensation.

None
of the current or former officers, directors or other defendants who
entered into the agreement has acknowledged any liability or
wrongdoing, according to the filing with the Securities and Exchange
Commission.

In August 2006 Cablevision said it was making a
voluntary review of its stock options practices after several other
companies reported issues with the timing and pricing of stock options.
The following month, Cablevision disclosed that it had granted stock
options to a vice chairman after he died and set the date of the option
to when he was still alive.

Stock options give holders the right
to buy stock at a certain price and are often used as a form of
compensation for executives. Many problems with stock options stem from
a practice called backdating, under which awards are made more
lucrative for the holder by assigning an earlier date to the grant at
which the stock's price was lower.