By Ina Fried, 14 August 2006 08:55
NEWS
Apple has received a letter from Nasdaq warning that it's not in compliance with the exchange's rules after delaying a quarterly regulatory filing amid a stock-options accounting probe.
Companies must complete regular Securities and Exchange Commission (SEC) filings as a requirement of continued listing on the Nasdaq. Apple said last week it would delay its quarterly filing, pending an inquiry into stock option grant irregularities.
The Mac maker said it has requested a hearing and will remain listed on the exchange pending that hearing.
An Apple spokeswoman said: "We fully anticipated receipt of this letter [from Nasdaq]. It's a matter of procedure. We're focused on resolving this matter as quickly as possible."
Apple is the best-known of dozens of companies that are under inquiry by either the SEC or the US Attorney's Office regarding the timing of stock option grants. The company disclosed in June that it had "discovered irregularities" related to the issuance of certain stock option grants made between 1997 and 2001, including one grant to CEO Steve Jobs. The grant to Jobs was later cancelled and Apple has said he received no financial gain.
Among the businesses investigating their options practices is CNET Networks, publisher of silicon.com. In June, CNET received a grand jury subpoena from the US Attorney's Office. It earlier said it is the subject of an informal inquiry from the SEC. This week, the company said it, like Apple, expects to delay its quarterly SEC filing.
Ina Fried writes for News.com
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