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Semtech Corp. said Wednesday that it received a federal subpoena relating to its stock options, and Monster Worldwide Inc. said it anticipates a U.S. Securities and Exchange Commission probe as the scandal over executive option grants continued to grow.
Semtech, a maker of semiconductors for cellular phones, said today it received a grand jury subpoena from the U.S. attorney from the Southern District of New York. The company, which is based in Camarillo, Calif., also said two shareholder lawsuits were filed in California state court.
Monster, which operates the Monster.com job-listing service, said it is preserving all documents related to stock-option grants in anticipation of an SEC investigation. This month, Monster launched an internal company probe and received a federal subpoena.
At least 49 companies are facing federal or internal investigations for possible stock-option manipulation. As the number has grown in recent weeks, more than 60 lawsuits have been filed against the companies. At least 15 executives at the affected companies have lost their jobs.
The issue is whether executives illegally backdated the grants, increasing the value of the options by timing them at low points, thus boosting the payout.
On Capitol Hill, more lawmakers expressed interest in the stock-options investigations. At a hearing of the Senate Banking Committee on pension accounting, Sen. Michael Enzi, R-Wyo., said he was "very disappointed by the Enron-type shenanigans that are going on.
"This is wrong and must be stopped," said Enzi, who is also chairman of the Senate Health, Education, Labor and Pensions Committee.
Information from The Associated Press was used in this report.