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Option backdating scandals can be the cause for stock a market crash – actions of Mercury Interactive executives, based on a court document, sends alarm
Karen Gonzalves
Feb. 18, 2007

The options back dating scandal is much deeper than ever thought. A court document showed former Mercury Interactive executives allegedly altered documents, repeatedly changed the dates of some option grants, and sent each other emails openly discussing stock options backdating.

There are close to a thousand publicly traded companies that may eventually have to confess to options backdating. The corporate officers of publicly traded companies forgot they are the servants of the shareholders. They cheated the shareholders. Now according to a Delaware court ruling these corporate officers can be sued by individual shareholders and pension funds.

The scandal is reaching enormous proportion. The regulatory bodies are swamped with work to unveil the real depth of the problem.

Some analysts believe it will cause serious damage to the stock market as the investors lose all faith on the corporate servants that manipulate papers to benefit themselves. What happens if hundreds of Enron happen at the same time? The Stock market can collapse!



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