The move came almost exactly a year after the SEC filed similar charges against former Apple CFO Fred Anderson and former general counsel Nancy Heinen.
Anderson settled his case, but Heinen is still on the hook and expects to go to trial sometime next year.
THIS SCORECARD WAS LAST UPDATED IN SEPTEMBER 2007 AND IS NO LONGER BEING UPDATED. Note: This list contains companies that have disclosed government probes, misdated options, restatements and/or executive departures as of Septmeber 2007.
The Santa Monica, Calif., videogame company said on July 28 that the SEC has asked the company for documents related to its stock-option grants as part of an informal inquiry.
The company also said its board has appointed a special subcommittee of independent directors to conduct an internal review of the companys historical stock-option grant practices. 25 the company said it appears likely that actual measurement dates for certain historical stock-option grants will be found to differ from the recorded grant dates for such awards.
As a result, it is possible that Activision will be required to record additional stock-based compensation expense related to stock-option grants.
"We will now work to resolve the remaining issues as quickly as possible and to put the proper remedial measures in place to ensure that this never happens again."The company also announced that Fred Anderson, Apple’s former CFO, has resigned from its board of directors. Anderson, who served as CFO from 1996 until 2004, informed the company that he believes it is in Apple’s best interests that he resign from the board at this time.
Apple initiated this voluntary independent investigation after a management review discovered irregularities in past stock option grants.• In a few instances, Apple CEO Steve Jobs was aware that favorable grant dates had been selected, but he did not receive or otherwise benefit from these grants and was unaware of the accounting implications.• The investigation raised serious concerns regarding the actions of two former officers in connection with the accounting, recording and reporting of stock option grants.Reyes' defense was that he signed off on the backdated options without intent to deceive, and he thought the company's finance group had properly disclosed the backdating in the annual reports.The court did not go nearly as far for Reye's co-defendant, Stephanie Jensen, Brocade's Vice-President of the Human Resources Department.On June 7, 2007, the company said the SEC issued a formal probe order related to its stock-options grants.(Headlines)The Dallas technology outsourcer acknowledged May 10, after a preliminary internal probe, that it had issued executive stock options that carried "effective dates" preceding the written approval of the grants.Mather, Anderson and Heinen, through their lawyers, have strenuously denied wrongdoing.