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EA under SEC scrutiny

Vidgame publisher under investigation

Electronic Arts is the latest company to be pulled into the Securities and Exchange Commission’s widening investigation into alleged stock option improprieties.

No. 1 videogame publisher revealed Wednesday that on Sept. 14, the SEC requested documents and information relating to its stock option grant practices from January 1, 1997 to the present

The SEC is investigating dozens of companies, primarily in the tech space, for allegedly backdating options in order to give execs an artificially high profit from a stock sale, and then not revealing the practice to investors. Others companies caught up in the potential scandal include Pixar, Apple, and Activision.

Stock options have been a common method of executive compensation in Silicon Valley, particularly during the boom market of the late ’90s.

EA said it is fully cooperating with the SEC’s request.

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