Flir Systems shareholders sue, allege backdating

According to the Seattle Times

Shareholders of Flir Systems have filed a lawsuit against the Portland maker of infrared and heat-detection systems for allegedly backdating stock options.

The practice of backdating involves setting the date of an option at the stock’s lowest point in a given period, artificially inflating the value of the award. In October, The Oregonian newspaper said Flir and several other large Oregon companies reported unusually favorable option grants and either declined to explain or declined to document how they chose their grant dates. Management at all the companies denied wrongdoing.

Flir did not return calls on Thursday for comment on the lawsuit.

The complaint filed in U.S. District Court in Portland states that since 1996 the company’s board of directors and executives condoned and covered up backdating of stock options—allowing for millions in excessive payment.