8-KOther EventsExhibits & Filings

AMERICAN TOWER CORP /MA/ 8-K Report, Temporary Suspension of Trading Under Employee Benefit Plans (Aug 14, 2006)

Filed August 14, 2006For Securities:AMT

Summary

American Tower Corporation (AMT) filed an 8-K on August 14, 2006, to report a temporary suspension of trading under its employee benefit plans. This action stems from a previously announced review of historical stock option granting practices and related accounting, which has led the company to anticipate a potential restatement of its financial statements. Consequently, AMT was unable to file its Quarterly Report on Form 10-Q for the period ended June 30, 2006, by the due date. As a result of the anticipated financial restatement and the delayed 10-Q filing, the company has suspended the use of its Form S-8 Registration Statement for its 401(k) Plan. This has triggered a "blackout period" for all 401(k) Plan participants, prohibiting them from directing investments into the company's stock fund. This blackout period also restricts AMT's directors and executive officers from buying or selling company stock, or exercising stock options, in accordance with Sarbanes-Oxley Act regulations.

Key Highlights

  • 1American Tower Corp (AMT) is temporarily suspending trading under its employee benefit plans due to a review of historical stock option practices.
  • 2The company anticipates a potential restatement of its financial statements.
  • 3AMT will not be filing its Form 10-Q for the quarter ended June 30, 2006, on time due to the ongoing stock option review.
  • 4A 'blackout period' has been initiated for the company's 401(k) Plan, preventing participants from investing in AMT stock.
  • 5Directors and executive officers are prohibited from trading AMT stock or exercising options during the blackout period, as per Sarbanes-Oxley Act requirements.
  • 6The blackout period is expected to end upon the filing of the Form 10-Q and any necessary restated financial statements.

Frequently Asked Questions

The suspension is a result of an ongoing review of the company's historical stock option granting practices and related accounting, which may lead to a restatement of past financial statements.

The blackout period affects participants in the company's 401(k) Plan, preventing them from making investment decisions into the company's stock fund. It also prohibits directors and executive officers from buying or selling company stock or exercising stock options.

The blackout period is anticipated to end on the date American Tower Corporation files its delayed Quarterly Report on Form 10-Q for the period ended June 30, 2006, along with any necessary restated financial statements with the SEC.

A financial restatement indicates that previously reported financial information was incorrect. Investors should monitor the company's subsequent filings for the nature and extent of the restatement, and any impact on the company's financial health and valuation. The delay in filing the 10-Q also suggests ongoing accounting complexities.