BRIEF: Sunrise company settles allegations of backdating stock options

Thu. March 05, 2009; Posted: 06:38 PM

Mar 05, 2009 (Sun Sentinel - McClatchy-Tribune Information Services via COMTEX) -- PDX | Quote | Chart | News | PowerRating -- The Securities and Exchange Commission on Thursday charged the former Pediatrix Medical Group with improperly backdating stock options granted to executives from 1997 through 2000.

The agency said in a press release that the Sunrise-based company settled the allegations without admitting or denying them.

Regulators alleged that that on numerous occasions, Pediatrix used hindsight to select favorable exercise prices for employee and officer stock option grants without accurately reporting the financial impact of the grants to investors.

The complaint alleges that Pediatrix failed to recognize a total of $8.8 million in compensation expense which resulted in an overstatement of pre-tax earnings amounting to 6.7 percent over the three year period.

Pediatrix, which changed its name to MEDNAX at the end of last year, agreed to be enjoined from violating securities laws in the future.

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