Court Approves The Settlement of the Cablevision Back-Dated Stock Option Case For $34.4 Million
Wolf Haldenstein Adler Freeman & Herz LLP is co-lead counsel in the derivative and class action lawsuit pending in the United States District Court for the Eastern District of New York on behalf of the shareholders of Cablevision Systems Corp. ('Cablevision') alleging back-dating of stock options between 1997 and 2002. The case is styled In Re Cablevision Systems Corp. Shareholder Derivative Litigation, 06-cv-DGT-AKT.
The settlement of $34.4 million consists of $24.4 million in contributions from the individual defendants and a $10 million contribution from Cablevision's insurance carriers. The settlement required Cablevision to enact specific corporate governance changes. The settlement achieved in this case, with a substantial collective contribution by the defendants, establishes that public companies, their executives, board of directors, and consultants must accept responsibility for insuring that all rules, regulations and laws governing compensation are complied with.
The Second Amended Complaint (the 'Complaint') alleged that certain of Cablevision's directors, officers and consultants received stock options and stock appreciation rights that were priced below the closing price for the company's stock on the date they were issued, in violation of Cablevision's stock option plans.
This action was settled in conjunction with an action pending in New York State Supreme Court, Nassau County. Following a settlement hearing held on September 9, 2008, Justice Bucaria approved the settlement.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 60 attorneys in various practice areas; and offices in New York City, Chicago, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Gregory M. Nespole, Esq. of Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, at (212) 545-4600 or via e-mail at Nespole@Whafh.com.