Shares of Marvell Fall on Stock Option Probes

Shares of Marvell Technology Group fell $3.53, or nearly 8%, to $41.31 on Wednesday after the semiconductor designer said authorities requested documents related to its granting of stock options.

In a filing with the Securities and Exchange Commission, Marvell said that SEC officials have requested documents and that it has also received a grand jury subpoena from the U.S. attorney’s office in Northern California for similar information.

The Santa Clara, Calif., firm said that its board was examining its past policy concerning stock options, which allow a person to buy shares at a set price. If the stock rises after their issuance, the options can represent a windfall worth millions of dollars.

The disclosure adds Marvell to a list of about 60 companies facing scrutiny of their stock options practices. In March, regulators began examining whether companies backdated stock options, or retroactively set the strike price to a level that was lower than the date they were issued.