SEC Investigates KLA-Tencor

Staff Reporter -- Electronic News, 5/31/2006

The Securities Exchange Commission (SEC) has launched an informal investigation into microchip equipment maker KLA-Tencor's stock option granting practices, the company said in a statement on Tuesday.

The KLA-Tencor investigation is the latest in a growing government probe into the stock option practices of various technology companies, including Rambus and Altera.

The SEC's involvement comes after KLA-Tencor's announcement last week that the company had received subpoenas from federal prosecutors requesting information about the company's past stock option practices.  In response to the federal subpoenas, KLA-Tencor had assembled a special committee of independent directors to conduct an internal investigation relating to the stock options granted to employees from 1995 to 2001. 

KLA-Tencor said in a statement that it will cooperate fully with the SEC's inquiry.