Glass lewis backdating
“In essence, Acacia’s existence as a separately listed and managed enterprise is viewed as preclusive by the regulatory entities holding sway over the company’s economic viability,” said advisers at Glass Lewis.Acacia does not really have any options other than to accept Barrick’s offer, which would hopefully let work resume, they added.Shareholders’ claims for alleged options timing misconduct more than three years’ prior to the spring or summer 2006 (when most of the lawsuits were filed) may well be time barred.Plaintiffs’ lawyers undoubtedly will seek to circumvent this bar by alleging concealment or some other excuse to stay of the limitations bar, but the whole point of a limitations statute is to avoid trying events from the distant past.But while the observation that plaintiffs’ lawyers are preferring shareholders’ derivative lawsuits appears to be valid, this observation does not explain plaintiffs’ lawyers are so eager to file derivative lawsuits.Traditionally, derivative lawsuits have not been nearly as lucrative for plaintiffs’ lawyers as securities fraud suits.Glass Lewis and ISS have in recent days both thrown their weight behind the bid, saying it represents the best value for Acacia’s long-suffering shareholders.Read more: Tanzania allows Acacia to restart gold exports, but bigger problems remain The gold miner has been struggling with an overbearing Tanzanian government, run by President John Magufuli, which has made it virtually impossible for the firm to run part of its operations in the country.
Institutional Shareholder Services (ISS) once set six as the maximum number of boards a director can serve effectively; now five is the limit, according to the 2017 ISS Benchmark Policy Recommendations for the Americas.
Whether or not these other settlements represent a trend that might be increaing plaintiffs’ lawyers interest in filing shareholder derivative suits, the derivative lawsuits brought in connection with options timing allegations appear subject to numerous defenses or other practical limitations.
To name but a few of the defenses and limitations: : For many of the companies involved in the backdating scandal, the period during which the alleged misdating took place covers a large swath of time, in some cases going back to the early or mid 90’s.
Barrick Gold, which is already its largest shareholder with nearly 34 per cent, has negotiated a way out of the crisis.
But Magufuli has said the deal is off if Acacia is a co-signer.