In re Comverse Technology, Inc. Derivative Litigation, Index No. 601272/06 (N.Y. Sup. Ct.)
KTMC served as Co-Lead Counsel in a stockholder derivative action brought for the benefit of Comverse Technology, Inc. (“Comverse”) to remedy a years-long stock option “backdating” scheme that unfairly enriched Comverse executives, including founder/Chairman/CEO Jacob “Kobi” Alexander, who notoriously fled to Namibia to escape prosecution. After significant investigation and litigation, we negotiated a settlement that required Alexander and certain other executives to disgorge more than $62 million in ill-gotten assets and overhauled the company’s corporate governance and internal controls. Among other things, the new measures replaced a number of directors and corporate executives, split the Chairman and CEO positions, and instituted majority voting for directors.