>>The alleged actions with respect to stock-option grants would certainly be a violation of US securities laws
Kind of depends on what they are exactly. I doubt if making a purported grant in excess of plan limits is criminal, for example. I've seen grants like that happen at many companies across the years. It does create an accounting mess, as the "grants" typically become subject to variable accounting until they get cleaned up.
Certainly the company will get dinged by their auditors (and perhaps the SEC) for lack of proper controls here, as they should be.
From my perspective, I care more about whether these loosey-goosey actions extend also to their programs (and to a lesser extent guidance) or not.
Peter
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