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.