NASDAQ notifies Apple of non-compliance
Apple today received a letter from NASDAQ notifying the company that it is incompliant with the tech stock exchange rules, and has requested a hearing before the NASDAQ Listing Qualifications Panel in response. "As anticipated, the letter was issued in accordance with NASDAQ procedures due to the delayed filing of the Company's Form 10-Q for the quarter ended July 1, 2006," Apple wrote. "Pending a decision by the Panel, Apple shares will remain listed on the NASDAQ Stock Market."
An internal investigation discovered irregularities related to the issuance of certain stock option grants on June 29th of this year, which resulted in shareholder lawsuits naming top executives of the company. The Securities and Exchange Commission (SEC) took up the case in mid-July, and industry watchers in early August surmised that news of the probe would affect company earnings, and Apple executives recently sought legal counsel for the pending legal battle.
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