AMCC Served Stock Options Subpoena
Staff Reporter -- EDN, June 28, 2006
Applied Micro Circuits Corp. (AMCC) has received a subpoena requesting documents relating to the company's stock option granting practices from the U.S. Attorney for the Northern District of California.
Additionally, AMCC said it has been contacted by the U.S. Attorney for the Southern District of California, which has opened its own investigation into the company's stock option practices.
AMCC assembled an audit committee in May to conduct a self-initiated review of its stock option grant practices. The review should be completed by June 29, the extended deadline for filing AMCC's annual Form 10-K, the company said.
Consequently, AMCC's board has postponed the stockholder meeting scheduled for June 30 until July 28.
AMCC is not alone. A growing number of companies in the industry, including Vitesse, KLA-Tencor, Maxim and Altera, have recently come under governmental scrutiny for the alleged backdating of stock options.
