Activision Inc. said the Securities and Exchange Commission's investigation into its stock-options grants turned formal, following the company's disclosure late May that it completed a review of the grants practices, The Wall Street Journal reported Thursday.
The Santa Monica, Calif., videogame publisher said it was informed in early
June about the SEC staff's nonpublic investigation, which allows it to subpoena
witnesses and seek documents, the paper reported.
In its amended report for the year ended March 31, 2006 -- filed with the SEC
May 25 -- Activision disclosed the results of the options probe, saying some
stock-option grant dates were selected with hindsight, and that four people were
responsible for the "measurement date inaccuracies," the paper reported
The company cleared some senior executives, including its chairman and chief
executive, Robert Kotick, of any "intentional wrongdoing" in the matter. Activision recorded about $45.4 million after-tax noncash stock-based compensation expense from April 1, 1993, through March 31, 2006, regarding the incorrect measurement dates for the options grants, the paper reported.
The company is cooperating with the SEC's investigation, according to filings with the SEC Thursday, the paper reported.-New York State Society of Certified Public Accountants
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