It seems like we just updated the options backdating numbers, because we did. But, with the settlement announced yesterday involving alleged options backdating at Broadcom Corporation (NASDAQ: BRCM) for $160.5 million, it's time to crunch the numbers once more.
Of the 39 options backdating cases that have been filed as securities class actions, 32 have now reached a resolution. Of the resolved cases, 9 of those cases have been dismissed and 23 have settled.
The twenty three settlements total $1.94 billion, for an average of $84.67 million. But, removing the largest settlement (UnitedHealth Group) lowers the average back to $46.45 million. While we previously noted that the averages had been slowly creeping down over time, the two settlements this month, Broadcom and Comverse, have bumped the average up by nearly 15%.
As we have previously noted, the options backdating cases have settled more quickly on average, than other cases. The twenty three cases have settled in an average of 695 days. While the numbers have been slowly creeping up as the remaining cases linger, the average time from filing to settlement is still below historical levels.
As always, our complete analysis can be accessed in this presentation.
Kevin LaCroix over at The D&O Diary also has a post on the Broadcom settlement, here.