Marvell Subject to Nasdaq Delisting
By Colleen Taylor -- EDN, September 13, 2006
Marvell Technology Group Ltd. is the latest company feeling the fallout from the industry-wide stock options trouble. The company received a notice from the Nasdaq stock market that it is not in compliance with Nasdaq's marketplace rules, having failed to file its Form 10-Q to the Securities and Exchange Commission for the fiscal quarter ended July 29. Marvell is now subject to delisting from the market.
Marvell said it intends to request a hearing before a Nasdaq listing qualifications panel for continued listing on the Nasdaq global market. The company's securities will remain listed on the Nasdaq global market pending a decision by the panel. However, there can be "no assurance" that the hearing panel will grant the company's request for continued listing, Marvell said in a statement.
The company delayed the filing of its Form 10-Q because a special committee is conducting a review of the company's historical stock option practices and related accounting matters. Marvell said it intends to file its Form 10-Q "as soon as practicle" following the conclusion of the special committee's review.
The SEC told a Senate panel last week that it is investigating more than 100 companies for stock options fraud.
Broadcom, Asyst, and Rambus, among others, have all faced the threat of delisting from the Nasdaq market due to stock option investigations.
