Rim backdating options
But that’s nothing compared to what awaits them after RIM’s 21% share price drop on Friday, June 17th.Far from new, shareholder lawsuits are becoming routine.Lazaridis gets frustrated as soon as he's questioned about the security of Black Berrys.He says, "we've just been singled out because we're so successful around the world." The interviewer follows up asking if Lazaridis can assure users in the middle east and India that they'll be able to use their Black Berrys and Lazaridis says, "The interview is over ...Three and a quarter years of earnings will need to be reduced by the amount of the errors.In its press release RIM announced that, "Consistent with current best practices in corporate governance, the roles of Chairman and CEO are being separated. Balsillie has voluntarily stepped down from the role of Chairman to allow future consideration of a non-executive Chairman by the Nominating Committee. Balsillie will retain his leadership roles as Co-CEO and Director." In addition, the release states that "the board has been expanded from seven members to nine." Regarding his stepping down as chairman, Jim Balsillie, says "That one's overdue in everybody else's mind," he said. 1 recommendation by all the governance practices by every single Canadian regulator." "We were one of the last holdouts for separating chair and CEO (positions), which seems to be something that people are focusing in on.Sitting in a lavish suite in the Majestic Barriere hotel in Cannes, casually dressed in sports jacket and chinos, Mr Balsillie, whose personal fortune was estimated at .4bn (£2.4bn) by Forbes in May last year, looks very much at ease considering the challenges ahead.Despite an endorsement from the most powerful man in the world, he has tough times ahead.
However, President Obama's obsession with his Black Berry is still a coup for Jim Balsillie, the co-chief executive and co-founder of Research In Motion (RIM), the Canadian company behind it.
Announce bad results and a specialized law firm files a class action suit on behalf of aggrieved shareholders.
The savviest of these firms keep small-scale shareholders on retainer, ready to be proffered as representatives of the injured class.
The opposing attorney asks you: What did you know and when did you know it? The legal eagle already knows the answer, that’s the basic rule: Only ask questions you know the answers to. This is what Mike Lazaridis and Jim Balsillie, RIM co-CEOs, are likely to face.
They’ve been in legal jeopardy before: In 2009, they paid hefty penalties for backdating stock-options.
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