Securities Law
SEC Won’t Act in Several High-Tech Backdating Probes
Several high-tech companies are reporting that the Securities and Exchange Commission won’t be taking any action against them for backdating stock options.
The SEC has closed its investigations of Electronic Arts, Linear Technology Corp., Nvidia Corp., PMC-Sierra Inc. and Zoran Corp., the Recorder reports.
Marc Fagel, the enforcement chief of the SEC’s San Francisco office, told the publication that the recent decisions are not an indication the agency is backing off from such probes. More enforcement actions are on the way, he said.
Securities litigator Peter Stone of Paul, Hastings, Janofsky & Walker told the Recorder that the SEC is simply “cutting the wheat from the chaff.”
