Alexander and William Sorin claim that Deloitte & Touche approved the stock backdating.
Comverse Technology Inc. (Pink Sheets: CMVT) founder and former CEO Kobi Alexander is continuing his legal maneuvers in the US even as he strives to foil the attempt by the US authorities to extradite him from Namibia. He and Comverse's former legal counsel William Sorin filed separate third-party complaints against the company's independent auditor, Deloitte & Touche LLC, on Thursday in the US District Court for the Eastern District of New York (Brooklyn). They argue that if they are held liable in the stock options backdating affair, Deloitte & Touche should contribute to at least some of the damages.
Alexander and Sorin argue that if they are found liable on any of the allegations brought by lead plaintiffs Menorah Mivtachim Holdings Ltd. (TASE: MORA) and Mivtachim Pension Funds, such liability is based on the acts and omissions of Deloitte & Touche, because the accounting firm allegedly approved of the company’s options granting process.
Deloitte & Touche has served as Comverse's auditor since 1994.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2009
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