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Wednesday, Jun 7, 2023

Investigation Finds No THQ Wrongdoing

An investigation by a special committee at video game publisher THQ, Inc. found no evidence of fraud or wrongdoing in connection with stock option grant practices, the company announced Tuesday. A special committee appointed by the board of directors of the Agoura Hills company did find documentation lacking in some instances and that incorrect measurement dates were used for financial accounting and reporting purposes. In connection with the incorrect measurement dates, the company will record additional non-cash stock-based compensation expense and related tax effects in the aggregate amount of approximately $11 million, after tax, for the period from Jan. 1, 1996 through March 31, 2006. THQ is among several companies in the San Fernando Valley being investigated by the U.S. Securities and Exchange Commission over stock option practices. In November, THQ was notified that it was not in compliance to be listed on the Nasdaq Stock Market because it was late in filing its second quarter 2006 financial results. The company expects to be file those results with the SEC by Jan. 19 with an eye toward regaining compliance.

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