Brooks Automation Receives Subpoena
Staff Reporter -- EDN, May 23, 2006
Brooks Automation Inc. has been subpoenaed by a grand jury over its stock option practices.
Specifically, the company was served on May 19, with a grand jury document subpoena from the U.S. Attorney for the Eastern District of New York requesting records pertaining to the granting of stock options.
A week before, Brooks had announced it would restate its financial statements from fiscal years 1999 through 2005 because it believed that it accounted for certain matters concerning stock options incorrectly, and as a result recognized less compensation expense than it should have in periods prior to this fiscal year.
Brooks isn’t the only company re-examining its books. A number of companies have been investigating their stock option programs in the wake of a March 18 Wall Street Journal article published indicating potential options backdating activity at several companies, including Vitesse Semiconductor Corp. Amid its growing turmoil, Vitesse has fired its CEO, CFO and an executive VP.
Adding its name to the list on Monday, KLA-Tencor said it has been served by the U.S. Attorney’s office because of suspicious timing in their granting of stock options to executives.
Brooks said it intends to fully cooperate with the U.S. Attorney in responding to this subpoena.
