RIM settlement in backdating scandal to be heard tomorrow
Research in Motion announced that it has reached an agreement with the Staff of the Ontario Securities Commission in the investigation of the company's backdating practices.
RIM came under investigation nearly two years ago for granting backdated options to employees without reporting their value as a charge against the company's income. Backdating options is fully recognized by law, but improperly filing them with securities agencies is an illegal practice which put the Canadian company in considerably hot water.
The ensuing probe caused Jim Balsillie to resign as RIM's chairman and relegated him to the position of co-CEO with Mike Lazardis as RIM announced a $250 million restatement related to those options. Investigators found that more than 40% of the stock options RIM had granted since 1996 were backdated.
Terms of the settlement agreement are undisclosed at the time, but will be heard tomorrow by a panel of Commissioners of the Ontario Securities Commission. If approved, the public will find out just how much more RIM owes.