Proxy Statement Need Not Disclose Black-Scholes Option Value

Business Valuation UpdateVol. 9 No. 5
Legal and Court Case Update
May 2003
7379 Computer Related Services, NEC
541519 Other Computer Related Services
breach of fiduciary duty

Seinfeld v. Bartz
322 F.3d 693, 2003 U.S. App. LEXIS 4026
March 7, 2003
Federal Court
9th Circuit
United States Court of Appeals


Plaintiff Seinfeld was a shareholder of Cisco Systems Inc. In 1999, the board of directors obtained shareholder approval to amend Ciscos Automatic Option Grant Program to raise the number of options granted to outside directors.

See Also

Seinfeld v. Bartz

Seinfeld filed a suit against Cisco and its board because it did not include the Black-Scholes valuation of the options in the proxy statement.