Electronic Arts says SEC ended stock option probe
Electronic Arts Inc. said Tuesday that the Securities and Exchange Commission had ended its investigation of the company’s stock option practices and that no enforcement action had been recommended.
The world’s biggest video-game publisher had been under scrutiny by the SEC for about 14 months as part of a crackdown by federal authorities on companies that enriched executives by backdating options to optimize gains.
Redwood City, Calif.-based Electronic Arts had said the agency’s probe covered grants dating to Jan. 1, 1997. The company, which has been cooperating with the inquiry, said it had found no evidence of backdating.
Separately, Electronic Arts said it would close its 150-employee office in downtown Chicago as part of a companywide cost-cutting initiative. Last week, it said it would trim its global workforce by about 4%, laying off about 350 employees. The company plans to consolidate two development studios in England.
Electronic Arts’ Chicago workers developed “Fight Night” and “Def Jam” games.
In the last quarter, the company lost $195 million, or 62 cents a share, on $640 million in revenue.
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