Feeds

Tech companies fingered by SEC share option probe

Delving deeper

Protecting users from Firesheep and other Sidejacking attacks with SSL

Juniper Networks and Openwave Systems have said they have been contacted by regulators investigating alleged abuse of share options back in the heady days of dotcom lunacy.

Juniper said it had been contacted by the US Attorney for Brooklyn asking for information about granting of stock options. Mobile software firm Openwave confirmed it had received a similar letter from the Securities and Exchange Commission (SEC).

Stock options became the incentive of choice for tech companies in the late 90s. The suspicion is that some companies moved the date of options back, and so guaranteed executives made a profit.

CNET Networks has formed a committee to look at how it granted share options, but has not said if it is under investigation.

Chip kit maker KLA-Tencor and chip designer Trident Microsystems join those companies that have been contacted by regulators seeking more information. RSA Security is also under SEC investigation.

Merrill Lynch yesterday warned its investors that the scandal may well spread. The firm investigated semiconductor companies and found shares were consistently doing better in the 20 days after options were granted.

On a day of big falls on exchanges worldwide, Nasdaq lost one per cent while Openwave fell 4.5 per cent and CNET almost seven per cent.

More from Reuters here and on the New York Times here. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.