A group of shareholders is suing the former compensation consultant to digital cable and telecoms company Cablevision Systems in relation to alleged illegal backdating of stock options.

A group of Cablevision investors, including the Teachers' Retirement System of Louisiana, allege that Lyons Benenson directly participated in the process of manipulating past option-grant dates at the cable company. This is the first case in which a compensation advisor has been sued for its role in backdating options.