Summary
Analog Devices, Inc. (ADI) has filed an 8-K report on May 24, 2006, disclosing that it received a document subpoena from the U.S. Attorney for the Southern District of New York concerning its stock option granting practices from 2000 to the present. The company intends to fully cooperate with the investigation. This subpoena appears to relate to the same stock option grants previously under investigation by the SEC. ADI has reached a tentative settlement with the SEC regarding its stock option practices and is working to finalize it. Importantly, the company has determined that no restatement of its historical financial results will be necessary due to this settlement, as the effects of using revised measurement dates for the options are deemed immaterial to its financial statements based on SAB 99 materiality guidelines.
Key Highlights
- 1Analog Devices Inc. received a document subpoena from the U.S. Attorney for the Southern District of New York regarding stock option grants.
- 2The subpoena covers the period from 2000 to the present.
- 3The company plans to fully cooperate with the U.S. Attorney's office.
- 4The options in question are believed to be the same ones investigated by the SEC.
- 5ADI has reached a tentative settlement with the SEC concerning stock option practices.
- 6The company has concluded that no restatement of historical financial results is necessary.
- 7The immateriality of revised stock option measurement dates is based on SAB 99 guidelines.