Novell starts stock option awards probe, makes third quarter loss
Former directors at both Brocade and Comverse are already facing stock option fraud charges brought by regulators and enforcement agencies, and other companies are conducting internal investigations into possible problems at their firms.
The Novell investigation has already impacted on Novell’s third quarter results posted this week.
The company said that “These financial results are preliminary because Novell, during this quarter, began a self-initiated, voluntary review of the company's historical stock-based compensation practices and related potential accounting impact. The financial results reported today do not take into account any adjustments that may be required in connection with the completion of the stock-based compensation review and should be considered preliminary.”
Federal investigators are looking at the stock option awards at dozens of US IT companies.