Juniper networks backdating

This was a critical technological improvement, which allowed unconstrained growth of Internet and secured Juniper a place in a market formerly dominated by Cisco Systems. The price per share was US.00, and 4.8 million shares were offered on the Nasdaq National Market under the trading symbol JNPR.

Juniper was reincorporated in March 1998 in Delaware.

As a startup, Juniper received $6 Million in funding from AT&T and the Anschutz Corporation in 1997.

To settle the action, each defendant consented to the entry of a permanent injunction prohibiting future violations of the antifraud, proxy and reporting provisions of the federal securities laws.

In addition, each defendant consented to the entry of an order requiring that they pay a civil penalty of $100,000.

Frequently, the actions include allegations of cover-ups. The complaint claims that from 1997 through 2002, the directors approved 21 separate backdated option grants.

In some instances, criminal charges have been brought. A series of “red flags” that were ignored by the directors when they approved these grants are detailed in the complaint.By the end of the first day as a publicly traded company, Juniper's stock rose to .88, a 190 percent single-day jump that increased the company's market capitalization to just below .9 billion, the highest first-day valuation for a technology company, according to Securities Data Corp.Juniper maintained market momentum by rapidly delivering new products based on successful M40 design. Here, an action was brought against Sycamore Networks, an optical networking company, its former CFO, Frances M. The complaint alleged that between 20 Sycamore used backdated options to compensate employees without properly accounting for about 0 million in related expenses.Those red flags, which are the predicate for the directors’ liability, included approving grants which were “as of” date which preceded the time the three directors executed the approval papers.Essentially, they involve fraudulently backdating stock option grants so that they are in the money and then not recording the related expenses of those options properly in financial statements. To conceal these practices, grant documents were falsified. This action was brought against the former chairman and CEO of KB Home, Inc. Karatz engaged in a multi-year scheme to backdate stock options for himself and others at the company. Karatz used hindsight to pick advantageous grant dates according to the complaint. Karatz receiving a total of 2,860,000 shares of KB Home stock which yielded million when exercised. Karatz consented to the entry of a permanent injunction prohibiting future violations of the antifraud, reporting and proxy provisions of the federal securities laws.

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