August 14th, 2006
Apple threatened with NASDAQ delisting
Apple received a Staff Determination letter on Friday from the NASDAQ threatening that its stock could be delisted from the prestigious exchange because it is "not in compliance with the exchange’s rules."
According to CNet’s Ina Fried:
Apple is the best-known of dozens of companies that are under inquiry by either the SEC or the U.S. 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.
The NASDAQ move comes after Apple announced that it had postponed its quarterly 10-Q filing with the U.S. Securities and Exchange Commission due to "a review of stock option grants and an anticipated restatement of previous filings."
In a statement Apple announced that it found questionable stock option grants for the period between 1997 and 2001 and mentioned that it is conducting an internal investigation:
"Based on the evidence of irregularities discovered to date, management has concluded, and the audit committee of the board of directors agrees, that the company will likely need to restate its historical financial statements."
Apple has requested a hearing before the NASDAQ Listing Qualifications Panel.
Jason D. O'Grady is the editor of PowerPage.org, which has been publishing daily mobile technology news since December 1995. For disclosures on Jason's industry affiliations, click here or to view Jason's full profile click here.
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