More than 50 largely tech firms are under the spot light of federal authorities for possible backdating of stock-option grants to give employees quick gains. CNET is facing probes from the U.S. attorney for the Northern District of California and the SEC.
According to the Wall Street Journal CNET believes the charges are material, and it currently expects to restate results for 2003, 2004 and 2005. However, the company doesn't expect the restatement to impact its previously reported revenue or cash positions.I.e. - they're royally up the creek without too many paddles. I just wonder how many more tech companies will get hit by this rampant options abuse scandal.