Chris O’Brien of the San Jose Mercury News reports that former executives of online business and technology news company CNET Networks have been subpoenaed by the SEC for a probe into stock options.
O’Brien wrote, “The developments became public when the company filed its second-quarter earnings statement with the U.S. Securities and Exchange Commission. However, the company actually learned that the investigation been elevated from informal to formal in May when it received a letter from the SEC, according to the securities filing.
“‘In May 2007, we learned that the SEC issued a formal order of investigation and served subpoenas on certain of our former officers in connection with its inquiry,’ the company wrote in the filing. ‘We are cooperating, and will continue to cooperate fully with the United States Attorney for the Northern District of California and the SEC.’
“The company did not disclose the names of the former officers who had been served.
“In June, the company received a request for its stock options records from the U.S. Attorney’s office. At the same time, Cnet launched an internal probe which concluded that some options granted between 1998 and 2001 had been backdated. The company restated its earnings for 2003 to 2005 and part of 2006.”
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