Former McAfee exec alleges wrongful acts over his options

McAfee, the Santa Clara maker of anti-virus and security software, said in a filing Wednesday that an unnamed “former executive” notified the company earlier this month of his intent to seek arbitration related to what he alleges was a breach of his employment contract, as well as other “wrongful acts” related to the expiration of his stock options.

The company disclosed the action in its annual 10-K report filed with the SEC, and said it
intends to “vigorously contest” the claims once they are filed.

In January 2007, a “former executive” filed an arbitration in Dallas related to
claims associated with his employment, which is scheduled to begin in August. The same
executive filed a complaint in the Superior Court in Santa Clara County in September. A motion to combine the California action with the Texas arbitration was granted in December, according to McAfee’s filing.

McAfee restated its results by $137.4 million covering fiscal years 2004 and 2005 as well as three quarters of 2006 and one of 2007 after an internal investigation revealed evidence of mis-priced option grants. The company “experienced significant change in (its) senior management team” in 2006 and 2007.” As a result of its stock option investigation, McAfee fired its general counsel, Kent Roberts, in May 2006 and its former president, Kevin Weiss, in October 2006, when its former chief executive, George Samenuk, also retired.

 
 

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