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Law360, New York (October 13, 2008, AM EDT) -- A judge has given preliminary approval to a settlement worth approximately million, marking a pivotal step toward ending a derivative lawsuit shareholders brought against several officers and directors of Mc Afee Inc. District Court for the Northern District of California approved the deal Thursday, overruling the objections of non-settling defendants former Mc Afee CEO George Samenuk, former general counsel Kent Roberts and former president Kevin Weiss.

over their alleged stock option backdating practices. The settlement, which resolves the federal derivative suit...

Let them walk away with comfortable golden parachutes. CHARLES ELSON: Well, it's this idea of backdating that's really the problem.

CNET and Mc Afee are just the latest companies to stumble over their options grants.

That is, of awarding an option where you've set the strike price — that is, the price at which the option is exercised at a date prior to the date it was actually awarded.

Meaning you build in an instant profit to the option. It's effectively betting on a horse race after the horse race is over.

Thursday, they announced that the investigation was not completed, but complete enough to warn investors not to rely on its annual financial statements for the fiscal years 2003, 2004, 2005, and the quarterly statements contained in those years plus those issued for the first quarter of 2006.TEXT OF INTERVIEWKAI RYSSDAL: The official word is they resigned. No admissions of intentional wrongdoing by anybody. Charles Elson teaches corporate governance at the University of Delaware.And that might save some face for the now-former CEO's and chairmen of Mc Afee and CNET. Professor Elson, remind us what this options scandal is. (Mc Afee) did not maliciously prosecute and defame its former general counsel Kent Roberts in an alleged "attempt to deflect attention from large-scale backdating of stock options within the company." The Court held that Roberts' claims of malicious prosecution do not survive under California's anti-Strategic Litigation Against Public Participation (anti-SLAPP). Court of Appeals for the Ninth Circuit held that Mc Afee, Inc.




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