Defendant Name: Quest Software, Inc.

Defendant Type: Public Company

Document Reference: LR-20950

Document Details

Legal Case Name SEC v. Quest Software, Inc., Vincent C. Smith, John J. Laskey, and Kevin E. Brooks
Document Name SEC Charges Quest Software and Three Executives With Stock Option Backdating
Document Date 12-Mar-2009
Document Format Civil Proceeding
Case Number 09-cv-00315
Federal District Court California, Central District of California
AAER 2949
Allegation Type Issuer Reporting and Disclosure
Document Summary The SEC stated that: "[It] filed a complaint in the United States District Court for the Central District of California against Quest Software, Inc., an Aliso Viejo, California-based software manufacturer, and three current or former officers: Vincent C. Smith, John J. Laskey, and Kevin E. Brooks."

Disgorgement & Penalty Information


Related Documents:

comp20950 12-Mar-2009 Complaint
The SEC stated: "This action involves improper stock option backdating at Quest Software, Inc. ("Quest"), which resulted in the issuance of financial statements that misstated stock-based compensation expenses by over $100 million. Between December 1999 and August 2002, Quest regularly backdated employee stock option grants to obtain low exercise prices without recording compensation expenses, which allowed it to report materially inflated income or understated losses. The fraudulent scheme, facilitated by Quest's most senior executives, involved options to acquire approximately 11 million shares of common stock spread over 28 separate grants, resulting in a $113.6 million restatement of operating income for the fiscal periods 1999 through 2005."
2009-57 12-Mar-2009 Press Release--Civil Action
SEC Charges Quest Software and Three Executives with Stock Option Backdating
The SEC stated that: "[It] charged Aliso Viejo, Calif.-based software manufacturer Quest Software, Inc. and three current or former officers for stock option backdating. The SEC's complaint alleges that Quest, its executive chairman Vincent Smith, its former chief financial officer John Laskey, and former controller and principal accounting officer Kevin Brooks improperly granted undisclosed in-the-money stock options to executives and employees by backdating millions of options from 1999 through 2002."
court_doc8_09-cv-00315 01-Apr-2009 Court Docket Document
Final Judgment against Quest Software, Inc.
On April 1, 2009, the Court issued a final judgment against Quest Software, Inc., stating: "Defendant Quest Software, Inc. . . . consented to the Court's jurisdiction over Quest and the subject matter of this action, consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction), waived findings of fact and conclusions of law, and waived any right to appeal from this Final Judgment."

Other Defendants in Action: