June 12 (Bloomberg) -- Monster Worldwide Inc., Broadcom Corp., Equinix Inc. and Cyberonics Inc. disclosed inquiries into whether they improperly dated stock options, bringing the number of companies involved in the widening probe to more than 40.
Comverse Technology Inc., the world's largest maker of voice-mail software, also delayed filing its first-quarter earnings and 2006 annual report as a special committee of the board carries out a review of the grants, the New York-based company said today in a Business Wire statement.
Companies in at least four countries have disclosed federal or internal inquiries into options grants. Investigators are looking at whether grants were illegally backdated or manipulated to coincide with low stock prices, which would make the options more valuable to executives who received them. Fifteen people have resigned or been fired, and more than 50 lawsuits are pending at more than 20 companies.
Monster, the New York-based operator of the Monster.com job- listing service, said a committee of independent directors is looking into its stock-options grant methods, according to a Business Wire statement today. The New York-based company hired an outside legal counsel to assist in the probe.
In 2006, Monster used a so-called restricted stock unit program instead of stock options as incentives for senior management, the company said.
Broadcom, a maker of computer chips for cable set-top boxes, drew an informal probe by the SEC into its stock options grants, the company said in a statement distributed by PR Newswire today. The Irvine, California-based company also said a shareholder lawsuit against directors and executives alleging damages in connection with the options grants process was filed May 25.
SEC Probe
Cyberonics, a Houston-based maker of medical devices, said in a regulatory filing today the SEC informed the company June 9 that it's conducting an inquiry into the company's stock options awards.
Equinix Inc., which provides data centers for Internet companies, said the SEC started an informal inquiry into its stock option grants, according to a Business Wire statement today. The Foster City, California-based company also announced its audit committee will conduct an internal review.
To contact the reporter on this story: Rebecca Barr in New York at Rbarr1@bloomberg.net
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