Aliso Viejo-based Quest Software Inc.’s long stock options ordeal has finally come to a close.
Federal regulators said they’ve settled their case against the maker of business software and are set to fine three current and past executives that were named in a probe into stock options backdating that stretched back two years.
The Securities and Exchange complaint alleged Chairman and former chief executive Vinny Smith, former vice president Kevin Brooks and former finance chief John Laskey backdated stock options from 1999 to 2002, according to reports.
Under the terms of the settlement, the three are set to pay $300,000 in fines without admitting or denying wrongdoing.
The SEC found that Quest backdated 28 stock option grants involving more than 11 million shares, according to a report in the Los Angeles Times.
Last year Quest took charges to past earnings of about $137 million to account for backdated options.
A year ago, Smith received what’s known as a Wells notice from the SEC stating its intention to sue him, the company and some employees for possible violation of securities laws relating to misdated stock options.
Former chief financial officer Brinkley Morse, Laskey and Brooks also received Wells notices at the time.
In December, Smith, Brooks and Laskey agreed to settle the case without admitting or denying any wrongdoing. The settlement was subject to final approval by the SEC.
The company makes software that improves on or helps manage other business programs from Oracle Corp., Microsoft Corp. and others.
Smith handed over the CEO title Doug Garn last year.
Investors sent shares up 3% on a recent market value of about $1 billion.
