Stock option saga claims another Nasdaq victim
By Colleen Taylor -- EDN, January 31, 2007
Comverse Technology Inc. has received word from Nasdaq that its common stock will indeed be delisted from the market, effective at the open of business on Thursday.
Nasdaq's listing qualifications panel warned Comverse that it was subject to delisting in September, due to its delayed filing of regulatory forms to the Securities and Exchange Commission (SEC). The forms were delayed due to an ongoing internal probe the company is conducting to examine its stock options granting history, amid an industry-wide crackdown on illegal backdating.
The software company has been mired in the stock options scandal for months. In August, three former Comverse executives were charged for allegedly orchestrating a long-running scheme to manipulate millions of stock option grants to themselves and to employees.
Comverse is certainly not alone in being on Nasdaq's bad side due to stock options woes. Atmel Corp., Broadcom Corp. and Brooks Automation Inc. are just a few of the many companies that have been dealt delisting threats in recent months due to delayed quarterly reports. However, it should be noted that all three companies were ultimately given a pass from the market for their stocks to remain listed.
Following the delisting of the company's common stock from Nasdaq, the company said its common stock will be quoted in the "Pink Sheets."
