Electronic Arts Faces Shareholder Suit Over Stock Option Grants

Authored by Mark Hefflinger on August 10, 2006 - 1:19pm.

Redwood City, Calif. - Video game publisher Electronic Arts announced on Thursday that it has been sued by a group of shareholders over its past granting of stock options. The lawsuit comes as fellow game publishers Take-Two, Activision and THQ all announced having received inquiries from the SEC regarding their stock options grants. The SEC said it is investigating more than 80 companies over the practice of "backdating," or changing the date on which past stock options were granted in order to increase their value. The suit against Electronic Arts was filed in San Mateo, Calif. superior court by a pension fund that also previously sued Apple over stock options grants.

http://biz.yahoo.com/e/060810/erts8-k.html
http://www.ea.com