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Wednesday, July 26, 2006

CNet Experts in Stock Backdating, Offers FAQ

I have no idea why I'm on this CNet kick, and I'm probably boring the few readers I do have, but I found it funny that CNet posted today an FAQ on stock backdating. The upshot: we're in good company (Apple does it too!), the tax laws incent the behavior, and at any rate, as long as you're up front with shareholders, it's not illegal. Well guess what CNet, shareholders won't care if the current SEC investigation finds your practices of backdating executive stock options illegal or not, they will still sue you. If it's such a benign practice, then why haven't you still announced your Q2 financial results? See you in court.

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