SEC Looks into Altera’s Books

Staff Reporter -- Electronic News, 5/26/2006

Altera Corp.’s internal investigation of its stock options granting practices has become a Securities and Exchange Commission (SEC) matter.

The company earlier this month recognized issues concerning stock options granted during the period 1996 through 2000. In turn, Altera’s board of directors established a special committee of directors to review the company's historical stock option practices and related accounting. And late Thursday, after Altera notified the SEC of the special committee's review, it subsequently received notice that the SEC staff has opened an inquiry on the company’s practices.

Altera has further received a subpoena from the office of the United States Attorney for the Northern District of California relating to the granting of stock options.

Altera said it is cooperating with both agencies.

Altera is one of several companies facing questions over its stock option granting practices. Analog Devices, KLA-Tencor and Vitesse are among the companies already plagued by investigations and subpoenas. For continuing coverage of the unfolding controversy, click here.