NEW YORK—Federal prosecutors are looking into the questionable stock-options grants by Comverse Technology Inc. that earlier this week forced the ouster of three top Comverse executives.
The U.S. Attorney’s Office for the Eastern District of New York has launched a criminal investigation into the grants, the technology company said in a Securities and Exchange Commission filing. Comverse said it would comply with a subpoena issued Tuesday requesting information.
The company has come under fire for stock-options grants to former Chief Executive Officer Kobi Alexander and other executives. An investigation by the Wall Street Journal found grants were often priced at or near quarterly low points in the company’s price share, raising questions about whether grant dates had been backdated or pre-dated to maximize profits for recipients.
Alexander, who founded the company in 1984, stepped down Monday; two other top officials also resigned. Comverse has said it will restate more than five years of financial results because of disparities regarding the grants.
Shares of Comverse edged downward on the news, losing 82 cents and trading at $23.21 per share.
