Start Vitesse backdating

Vitesse backdating

The SEC's case against Tomasetta and Hovanec is contested. In 2007, the company and executives settled a class action over backdating allegations for $10.2 million, plus about 3 million shares of stock.

Vitesse settled the matter by agreeing to pay a $3 million civil penalty.

Backdating allows executives to choose a past date when the market price was particularly low, thereby inflating the value of the options.

An example illustrates the potential benefit of backdating to the recipient.

Mody and Kaplan have each agreed to a bifurcated settlement that provides they will be permanently enjoined and ordered to pay disgorgement, and that any civil penalty will be determined later by the district court.