The stock option mess is bruising two of the biggest tech brands to date — Apple and Steve Jobs. Apple just released a statement that says due to “irregularities related to the issuance of certain stock option grants made between 1997 and 2001” the company will likely restate past financial statements.
Apple says it announced an internal investigation into company stock option irregularities in June but has now found additional evidence to lead to a possible restatement. The company didnt give a date or amount of the restatement, but said as a result of an ongoing investigation, it will delay the filing of its Form 10-Q for the quarter ended July 1, 2006.
A line that should give investors heartburn: “The Company today filed a Form 8-K stating that the financial statements and all earnings and press releases and similar communications issued by the Company relating to periods commencing on September 29, 2002 should therefore not be relied upon.” Thanks, good to know.
The problematic grants could even touch the chief himself. This stock option debacle just keeps getting bigger and bigger.