Novell finds stock options errors |
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Thu, 19 Apr 2007 17:15
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NEW YORK (AP) - Networking software company Novell Inc. said Thursday a review of its stock option granting practices found that the company used 'incorrect measurement dates' for some of its grants between November 1996 and September 2006.Novell said it found 'no intentional wrongdoing' by any former or current employees, officers or directors of the company.At least 211 companies have disclosed internal or federal investigations into their stock options granting practices. Novell was conducting an internal probe only.At issue is a practice known as backdating, in which options are issued retroactively to coincide with low points in the stock price, which can increase the profit for the recipient. Backdating is not necessarily illegal, but it must be disclosed to investors and accounted for properly.Novell has delayed filing its reports for the fiscal quarters ended July 31, 2006 and Jan. 31, 2007 and for the fiscal year ended Oct. 31, 2006 as a result of the probe.The company expects to record additional stock options costs, but it said it has not yet determined the amounts.Shares were unchanged at $7.40 in midday trading on the Nasdaq Stock Market.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Novell gets Nasdaq non-compliance notice 