Comverse Technology controversies

Stock-options backdating scandal

Comverse Technology became embroiled in a United States investigation into the alleged backdating of employee stock options and related financial-reporting practices. Co-founder and chief executive Jacob Alexander and two other senior executives were charged with conspiracy, fraud, money laundering, and false filings. Alexander left the United States for Namibia and contested extradition. The company had to restate financial reports, was delisted from Nasdaq, removed from the S&P 500, and spent years dealing with the resulting legal, accounting, and reputational damage. Comverse Technology became the subject of a United States criminal investigation into the alleged backdating of employee stock options. Co-founder and former chief executive Jacob Alexander and two other senior executives were charged with conspiracy, fraud, money laundering, and false filings. Alexander fled to Namibia and contested extradition. The investigation led to prolonged financial restatements, legal expenses, management disruption, Nasdaq delisting, and removal from the S&P 500.