A Worm in the Apple
Apple said an internal investigation discovered irregularities related to the issuance of certain stock option grants made between 1997 and 2001.
A special committee of Apple's outside directors has hired independent counsel to perform an investigation, and the Company has informed the SEC.
As a result of the ongoing investigation, the Company will delay the filing of its Form 10-Q for the quarter ended July 1, 2006.
The warning was the latest development in a matter first disclosed on June 29. At that time, the company said that it had uncovered irregularities with stock options awarded to employees between 1997 and 2001, including one award to Chief Executive Steve Jobs.
In light of this, management has concluded, and the audit committee of the board of directors agrees, that the company would likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants.
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