SEATTLE, Nov. 3, 2006 (PRIMEZONE) -- Keller Rohrback L.L.P. (www.seattleclassaction.com) today announced that it is continuing its investigation of Research in Motion Ltd. ("RIM" or the "Company") (Nasdaq:RIMM) and current and former Company executive officers and directors for potential violations related to the backdating of stock options. On October 27, 2006, RIM announced that it is the subject of an informal inquiry by the SEC and that it had had communications with both the SEC and Ontario Securities Commission concerning its stock options practices. On September 28, 2006, RIM announced that it was completing a voluntary review of its historical option granting practices. The Audit Committee of the Company made a preliminary determination that GAAP accounting errors were made regarding certain historical stock options granted from fiscal 1998 to present. The Audit Committee made a preliminary determination that a restatement of RIM's historical financial statements will be required to reflect the accounting errors and that it is expected that the potential effect of a restatement will be to increase the amount of non-cash charges associated with past option grants which would reduce the amount of the Company's previously reported GAAP earnings by an aggregate amount of approximately $25-$45 million over the period since the Company's IPO in 1997.
Keller Rohrback's investigation focuses on the extent to which the Company's stock option grant dates and exercise prices of stock options were manipulated by RIM's executive officers and directors in order to boost their value to the grantees. Specifically, we are looking at whether potential defendants have breached their fiduciary duties and colluded with one another to: (1) improperly backdate grants of RIM's stock options to various executive officers and directors in violation of the Company's shareholder-approved stock option plans; (2) improperly record and account for the backdated stock options in violation of GAAP; (3) improperly take tax deductions based on the backdated stock options in violation of the Tax Code; and (4) produce and disseminate to the Company's shareholders false financial statements and other SEC filings that improperly recorded and accounted for the backdated option grants thereby concealing the improper backdating of stock options.
If you are a current shareholder of Research in Motion Ltd., and owned shares of the Company stock anytime from 1998 to the present, and would like additional information concerning the shareholder derivative claims presently being investigated, or have information that is relevant to our investigation, please contact paralegal Jennifer Tuato'o or attorneys Juli Farris, Elizabeth Leland, Cari Campen Laufenberg, Lynn Sarko or Gary Gotto by telephone, toll-free at 1-800-776-6044, or via e-mail at: investor@kellerrohrback.com.
To date, more than 100 companies are being investigated by the U.S. Department of Justice, the Securities and Exchange Commission, and U.S. Attorney's offices across the country, resulting in civil and even criminal charges. Keller Rohrback L.L.P. is currently investigating the following companies for improperly manipulating the prices of options granted to executive officers and directors:
Company Novell Inc. Molex Inc. Electronics for Imaging, Inc. Silicon Image Inc. Western Digital
Keller Rohrback L.L.P. is a law firm headquartered in Seattle that has successfully represented shareholders and consumers in class action cases for over two decades. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.