Friday, December 7, 2007

Court dismisses options suit against iBasis

Burlington's iBasis Inc. reports that a court has dismissed a derivative lawsuit in connection to iBasis stock options.

The U.S. District Court in Massachusetts has dismissed all claims in a derivative lawsuit filed alleging grant date manipulation in the award of stock options to current and former directors and employees of iBasis, company officials said.

In June, two lawsuits against iBasis, as nominal defendant, and certain current and former officers and directors of iBasis were consolidated into a single suit alleging violations of the Securities Exchange Act of 1934 and the Sarbanes-Oxley Act of 2002. The suits raised state law claims including unjust enrichment, breaches of fiduciary trust and waste of corporate assets.

Last year, iBasis, a wholesale voice over Internet protocol (VoIP) provider, announced it would restate its financial statements to correct errors related to its accounting for noncash, stock-based compensation between 1999 and 2006.

Also, company officials conducted an internal review and terminated the employment of Jonathan D. Draluck, the company's former vice president of business affairs and general counsel.

During fiscal 2006, iBasis reported a net loss of $2.19 million on revenue of $511 million.