Activision Probed by SEC

Logan Frederick

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Aug 19, 2006
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Activision Probed by SEC



In a continuing string of SEC investigations, Activision gets probbed for backdating its stock option grants.

Game publisher Activision announced today that the Securities and Exchange Commission (SEC) has launched an investigation into stock options backdating of the company's stock. A restated quarterly report reveals that the SEC notified the publisher earlier this month, after nearly a year of informal inquiry. Activision is said to be cooperating with the SEC and the Department of Justice, who has been sitting in on discussions between the two organizations. No Activision employees have been subpoenaed or brought to court.

Options backdating has been a trend throughout many game companies, including the recent THQ [http://www.escapistmagazine.com/news/view/67512-THQ-Option-Investigation-Closes] and Take-Two Interactive [http://www.escapistmagazine.com/news/view/66839-Take-Two-Stock-Options-Found-Improper] investigations, and generally yields little penalty for the company. Shares of Activision (ATVI [http://finance.google.com/finance?q=ATVI]) dropped 3.63 percent at the time this story was written.

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