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WDC » Topics » We face litigation risks relating to our historical stock option grants that could have a material adverse effect on the operation of our business.This excerpt taken from the WDC 10-K filed Aug 28, 2007. We face
litigation risks relating to our historical stock option grants
that could have a material adverse effect on the operation of
our business.
Several purported derivative actions were filed nominally on our
behalf against certain of our current and former directors and
officers in connection with our historical stock option granting
practices. See Part I, Item 3, “Legal
Proceedings” for a more detailed description of these
proceedings. We are and may in the future be subject to other
litigation or government investigations arising in connection
with such option practices. These proceedings may be
time-consuming, expensive and disruptive to normal business
operations, and the outcome of any such proceeding is difficult
to predict. The defense of such lawsuits or investigations could
result in significant expense and the diversion of our
management’s time and attention from the operation of our
business, which could impede our ability to achieve our business
objectives. Some or all of the amount we may be required to pay
to defend or to satisfy a judgment or settlement of any or all
of these proceedings may not be covered by insurance.
Under indemnification agreements we have entered into with our
current and former officers and directors, we are required to
indemnify them, and advance expenses to them, in connection with
their participation in proceedings arising out of their service
to us. These payments may be material.
This excerpt taken from the WDC 10-K filed Nov 20, 2006. We face
litigation risks relating to our historical stock option grants
that could have a material adverse effect on the operation of
our business.
Several purported derivative actions were filed nominally on our
behalf against certain of our current and former directors and
officers in connection with our historical stock option granting
practices. See Part I, Item 3, “Legal
Proceedings” for a more detailed description of these
proceedings. We are and may in the future be subject to other
litigation or government investigations arising in connection
with such option practices. These proceedings may be
time-consuming, expensive and disruptive to normal business
operations, and the outcome of any such proceeding is difficult
to predict. The defense of such lawsuits or investigations could
result in significant expense and the diversion of our
management’s time and attention from the operation of our
business, which could impede our ability to achieve our business
objectives. Some or all of the amount we may be required to pay
to defend or to satisfy a judgment or settlement of any or all
of these proceedings may not be covered by insurance.
Under indemnification agreements we have entered into with our
current and former officers and directors, we are required to
indemnify them, and advance expenses to them, in connection with
their participation in proceedings arising out of their service
to us. These payments may be material.
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