The process became so prevalent that some investigators believe 10% of the stock grants made nationwide were issued under these false pretenses.
A series of academic studies was responsible for bringing the backdating scandal to light.
A 1982 amendment to the tax code created an incentive for executives and their employers to work together to break the law.
A series of two follow-up studies by professors elsewhere suggested that the uncanny ability to time options grants could only have happened if the granters knew the prices in advance.
A Pulitzer Prize-winning story published in The Wall Street Journal finally blew the lid off of the scandal.
Law360 (June 3, 2008, AM EDT) -- Data management company Brocade Communications Systems Inc.
has agreed to pay shareholders 0 million in what is to date the largest settlement of a class action stemming from the far-reaching options backdating scandal.
Other shareholder lawsuits, including shareholder fraud lawsuits, remain pending.