On Friday, the SEC filed a settled enforcement action against Trident Microsystems, Inc., its founder and former CEO, and its former Chief Accounting Officer alleging violations related to stock option backdating.
The SEC alleged that from at least 1993 to May 2006, Trident and the named executives “engaged in a fraudulent and deceptive scheme to provide undisclosed compensation to executives and other employees, concealing millions of dollars in expenses from the Company’s shareholders.” The CEO and CAO allegedly backdated stock option grants to coincide with the dates of low closing prices for the company’s stock.
