Armistice in Options Turf War?

Last spring, the flurry of subpoenas sent out by the Brooklyn, Manhattan and San Francisco federal prosecutors’ offices over stock options backdating gave the appearance of a turf war — especially since the Eastern District of New York U.S. attorney’s office subpoenaed several Silicon Valley companies. It only took a few weeks for the DOJ to put the kibosh on cross-country subpoenas after some protests from the Northern District of California U.S. attorney’s office.

And now, it looks like those out-of-state investigations may have been for naught. After pulling back their wide net, the Brooklyn federal prosecutors seem to have found their first backdating case in their own backyard: Comverse, where three top executives resigned in April following a backdating investigation, is based in Long Island, right inside the Eastern District.

Of course, with San Francisco having issued the first charges, the question of what the Southern District of New York is doing — and whether they’ll beat out Brooklyn — is still up in the air. But lawyers in New York say plenty of cases are in the pipeline.

Justin Scheck


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