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Taking Stock Of The Backdating Cases

Publication Date: 
June 13, 2007
Source: 
The Wall Street Journal Law Blog
Author: 
Ashby Jones

Professor Joseph Grundfest's opinion about pending cases on backdating of stock options is quoted in this blog:

In several of the suits dismissed, courts have found that plaintiffs didn’t plead that a majority of board members had sufficient interest in the alleged backdating to compromise their judgment. “The legal business operates on precedent, and the precedent seems to be accumulating that plaintiffs will have a hard time establishing ‘demand futility,’” says securities-law expert and Stanford Law professor Joseph Grundfest. “That said, it’s still early.”