THQ Being Investigated by SEC

[fitbabits]

Next Generation (http://www.next-gen.biz) is reporting that THQ's stock option grant practices are being investigated by the US Securities and Exchange Commission (SEC).

You can read the full article here (http://www.next-gen.biz/index.php?option=com_content&task=view&id=3590&Itemid=2).

Following the recent news of similar investigations of publishers Activision and Take-Two, THQ revealed today that it too will be probed by the SEC. Like its predecessors, the company plans to "fully cooperate" with regulators.

The informal inquiry requests relevant documents from January 1, 1996 to present.

THQ said in a statement that it had begun its own internal investigation of its stock option grant practices; an audit which was prompted by news reports and analysts' insight that the SEC is cracking down on the issue across multiple industries.
I have a bad feeling about all these 'informal' investigations...

[Netami]

I don't get it.

[Sazime]

You mean like "informal" paychecks to "informal" inspectors? Hell, after what happened with the tech bubble, these types of things are neccassary.

[TrackZero]

THQ cancels PS3 wrestling game. Sony leans on the SEC. Hello @ investigation.

</conspiracy!>

[fitbabits]

I don't get it.
What's not to get? THQ, Activision and Take-Two have either already been or are under investigation by the SEC. There appears to be a trend developing and I hope that everyone who is under investigation is cleared, otherwise it's adding fule to the 'regulate games' fire.

[fitbabits]

THQ cancels PS3 wrestling game. Sony leans on the SEC. Hello @ investigation.

</conspiracy!>
Hmm, SEC is almost an acronym for SCE (Sony Computer Entertainment)! Coincidence? I'll let you decide. :rolleyes:

[Johan]

Stock options have been a hot potato for a lot of companies...hopefully they're on the up-and-up, but if not, I also hope they get what's coming to them, because stock option shenanigans and CEO pay have really been screwing the little guy for a while now :(

[Atepsflame]

Stock options have been a hot potato for a lot of companies...hopefully they're on the up-and-up, but if not, I also hope they get what's coming to them, because stock option shenanigans and CEO pay have really been screwing the little guy for a while now :(

Hey, when it comes to big business, it's all about screwing the little guy. I mean, that money doesn't just come out of now where. Well, at least not until you artificially inflate the price of your stocks.

[greenapple]

What's not to get? THQ, Activision and Take-Two have either already been or are under investigation by the SEC. There appears to be a trend developing and I hope that everyone who is under investigation is cleared, otherwise it's adding fule to the 'regulate games' fire.

Eh? This is the SEC (securities exchange commission) not the FCC (federal communications commission). There's no 'regulating games' aspect here. These are investigations of their business practices, not the products they publish.

Even if the investigations turn up stuff, this has nothing to do with their game content.

[GWhite]

Err... don't you guys follow the news? This is part of a recent SEC push to crack down on back dating of options and other such shenanigans. The same thing is happening to quite a few firms.
Here is a representative article (http://www.miami.com/mld/miamiherald/business/15213066.htm).

EDIT: Whoops, looks like Johan123 already has this covered.

[Netami]

Stock options have been a hot potato for a lot of companies...hopefully they're on the up-and-up, but if not, I also hope they get what's coming to them, because stock option shenanigans and CEO pay have really been screwing the little guy for a while now :(

So... They are investigating to make sure these companies aren't screwing over their employees via malpractice in stock options? What's the worst case scenario, is basically what I wanna know, these companies get shut down or just fined a bunch or what?