Reply #14: Mercury Interactive - 3 execs quit in option scandal [View All]

[UpInArms]

http://www.mercurynews.com/mld/mercurynews/business/personal_finance/13069226.htm

A financial scandal at Mercury Interactive deepened Wednesday when three of the software company's top executives resigned after an internal investigation revealed that the company had manipulated stock options to the advantage of executives and employees over the past decade.

The Mountain View company's stock tumbled 27 percent Wednesday, falling $9.34 a share to close at $25.66.

As a result of the options scandal, the company said it must file amended current and past financial statements and it faces delisting from the Nasdaq if it can't file restated reports by Nov. 30. The company was unable to release third-quarter results Wednesday, as scheduled.

Mercury, which makes software to test corporate software applications, said it named Tony Zingale, previously president and chief operating officer, as its new chief executive, replacing Amnon Landan.

Landan, chief financial officer Douglas Smith and general counsel Susan Skaer resigned after a special committee of board members determined that executives had manipulated the dates of option grants from 1995 to the present to boost their odds of profiting or to reduce their tax liability.

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