RSA Security (RSAS) shares dropped 6% as the company came under Securities and Exchange Commission scrutiny for stock option practices.
The Bedford, Mass., tech outfit said the agency sent a letter requesting documents related to the company's stock option grants and stock option practices. The SEC has sent similar letters in recent weeks to companies ranging from
RSA Security was one of a number of companies identified recently in a
third-party report on the timing and pricing of stock option grants for the years 1997 to 2002. The report highlighted options granted by the company on three specific dates during the period of October 1997 to November 2000.
RSA said it intends to cooperate fully with the SEC.
Shares of RSA fell $1.05 to $16.22.