Quest Software Inc. in Aliso Viejo announced today it has agreed to a settlement with the U.S. Securities and Exchange Commission over how it previously handled employee stock options.
Under the settlement, which must be approved by SEC commissioners, the company will not be charged with fraud and will not have to pay any monetary penalties. Chief executive Vincent C. Smith also will be allowed to continue to head the company.
In September 2007, the company took a $143 million non-cash accounting charge after an internal investigation showed employee stock options granted from 1999 to March 2006 were incorrectly dated.
The SEC began a formal investigation of Quest’s accounting and stock options practices in January 2007. Last February, the company said the SEC had notified Quest the commission planned to bring civil action against the company, Smith and three other current and past executives as a result of its investigation.
Under today’s announced settlement, the company and Smith agreed, without admitting or denying the allegations in the SEC’s complaint, to be enjoined from future violations of certain federal securities laws.
The settlement fully resolves the SEC’s stock options investigation into the company, Quest said.
Read Quest’s full press release HERE.
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Good job SEC! Now, probe Fannie & Freddie.
this company is known to cook its books for years.