CNet Networks, a San Francisco based media conglomerate which provides online technology news and reviews, has just disclosed today that several former executives were subpoenaed in May 2007 as part of an ongoing investigation by the SEC into backdated stock options. Earlier in May, CNet was first made aware of the investigation when it recieved a letter from the SEC informing the company that a formal investigation was underway. Details have only now been released to the public due to statements in CNet's second-quarter earnings report.
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In May 2007, we learned that the SEC issued a formal order of investigation and served subpoenas on certain of our former officers in connection with its inquiry," CNet wrote in the filing. "
We are cooperating, and will continue to cooperate fully with the United States Attorney for the Northern District of California and the SEC." In June, the company launched its own internal proble, revealing possible backdating of stock options granted from 1998 to 2001. Consequently, CNet reissued earnings statements for 2003 to 2005 and part of 2006.
Currently, the former executives involved in the subpoena remain unknown.
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