August 11, 2006 1:58 PM PDT

Nasdaq puts Apple on notice

Apple Computer, which has delayed a quarterly regulatory filing amid a stock-options accounting probe, said Friday that it has received a letter from Nasdaq warning that it's not in compliance with the exchange's rules.

Companies must complete regular Securities and Exchange Commission filings as a requirement of continued listing on the Nasdaq. The Cupertino, Calif.-based company said last week it would delay its quarterly filing, pending an inquiry into stock option grant irregularities.

The Mac maker said it has requested a hearing and will remain listed on the exchange pending that hearing.

"We fully anticipated receipt of this letter," Apple spokeswoman Katie Cotton told CNET News.com. "It's a matter of procedure. We're focused on resolving this matter as quickly as possible."

Apple is the best-known of dozens of companies that are under inquiry by either the SEC or the U.S. Attorney's Office regarding the timing of stock option grants. The company disclosed in June that it had "discovered irregularities" related to the issuance of certain stock option grants made between 1997 and 2001, including one grant to CEO Steve Jobs. The grant to Jobs was later cancelled, and Apple has said he received no financial gain.

Among the businesses investigating their options practices is CNET Networks, publisher of CNET News.com. In June, CNET received a grand jury subpoena from the U.S. Attorney's Office. It earlier said it is the subject of an informal inquiry from the SEC. This week, the company said it, like Apple, expects to delay its quarterly SEC filing.

See more CNET content tagged:
Mac maker, inquiry, stock option, Apple Computer, compliance

21 comments

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Sorry, but you can't cancel criminal intent
Sounds like Apple's trying to cover for Jobs.
Posted by WJeansonne (480 comments )
Reply Link Flag
Sorry, but you have no proof
You sound like a typical Apple hater. Apple itself disclosed the
irregularities, unlike another well-known software giant that was
dragged into court and convicted.

Have a nice day!
Posted by lesfilip (496 comments )
Link Flag
What?
Where do you get your information from - whose covering for Jobs? The company reported the incident itself. As for Jobs, he refused to take options when offered to him. Were you as much of a conspiracy theorist as you attempt to present yourself, you already would have researched this and found this information out for yourself.

Please, before making a comment at least attempt to have some facts.
Posted by mikegraham (9 comments )
Link Flag
Sorry, but you have no proof
You sound like a typical Apple hater. Apple itself disclosed the
irregularities, unlike another well-known software giant that was
dragged into court and convicted.

Have a nice day!
Posted by lesfilip (496 comments )
Reply Link Flag
I'm sure microsoft granted
stocks illegally too...stay tune...
Posted by microsoft slayer (174 comments )
Reply Link Flag
SEC
You need to send that info to the SEC then.

Or, you could shut up, but you should probably just send in the info. Since we haven't heard anything about this, you should post it on your blog, then send a note to the SEC to direct them to the evidence. Think of the traffic you can generate for your blog ads!
Posted by KTLA_knew (385 comments )
Link Flag
OMG, here comes Hurricane Apple
OMG, OMG, OMG, ...
Posted by ptcruiser1 (3 comments )
Reply Link Flag
QT F-s up Win x64...
quicktime wont uninstall from Win x64 and leaves processes running that sometimes consume 100% cpu till there killed

IMHO, a company like Apple has no excuse for this. all they need to do is recompile. This behavior is a disservice. and they want us to trust them in a datacenter? and those patents and aircraft..
Posted by freqmd5 (19 comments )
Reply Link Flag
btw.. i loved the dual floppy plus
and omni web was such a great browser...
Posted by freqmd5 (19 comments )
Link Flag
yah nincompoop
Why are you installing winbloze x64 on a mac anyway, you idiot?
Posted by microsoft slayer (174 comments )
Link Flag
Quicktime
doesnt work properly on any version of Windows.
Posted by SystemsJunky (409 comments )
Link Flag
What?
>As for Jobs, he refused to take options when offered to him.<

Even so, as CEO, he is not without blame for the company's compensation policies.
Posted by john55440 (1020 comments )
Reply Link Flag
Including CNET changes things
Keeps the article from having that all too typical 'Let's pick on
Apple' tone.
Posted by J.G. (837 comments )
Reply Link Flag
Sometimes the news is just news
Ok, it is tech related so I can't blame cnet for posting it. They even mention themselves being in the same situation. It seems to me that this is tech news that doesn't really affect anything... similar to people magazine posting who's pregnant on the mid-day soap opera. I would rather cnet post news, reguarless if many may consider it irrelavent than censor what they post to cater to special interests blasting cnet for what amounts to very little. News is just news... sometimes not all that important, but still news.

As for me, I have no doubt that Apple will get things worked out; they are taking the proper steps towards resolving the issue now.
Posted by Seaspray0 (9714 comments )
Link Flag
steve.... step down...
like you cant afford to take some accounting courses... you dont even need to worry about paying rent, food and having health care...

reminds me of a guy I saw sitting in traffic in San JOse (was looking for work living out of my car), driving a lambo in the shoulder... going like 50 in bumper to bumper... skids out of control... smashes a civic bad... crawls out of his car... and starts crying over the wrecked exotic, he droped to his knees... never ran over to check on the people he hit..

and look what the world does to homeless people who steal from grocery stores!

my celebrity, its not love.. its not love at all.. not in a world like this
Posted by freqmd5 (19 comments )
Reply Link Flag
re: steve.... step down...
Fact: Apple announced that they are conducting an investigation into improper stock option pricing. It's an investigation, nothing more. There have been no charges filed by the SEC. At least, not yet.

Therefore, why does he need to step down when Apple has not even been found guilty of anything yet?
Posted by NickEP (11 comments )
Link Flag
freq5md.... step down...
In what way does your post realte to the article? Dude, step down
from your high horse, and... have a nice day!
Posted by lesfilip (496 comments )
Link Flag
With all the food shelters......
.... Homeless people who can't figure out a better answer than
stealing the food deserve to be picked up by the police. And if the
police and the courts can't clue them in, they deserve jail time for
their own benefit.
Posted by Earl Benser (4310 comments )
Link Flag
Steve Jobs should Resign!
Not! But I bet you clicked the message to read it.

Sorry, it's just that I see posts like that all the time for Bill Gates for the same silly stuff. I couldn't help myself.
Posted by Seaspray0 (9714 comments )
Reply Link Flag
 

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