No News Is Good News at RIM

Shares rise as the company updates investors on its stock option probe.
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Research in Motion (RIMM) shares inched ahead late Friday after the company updated investors on its stock-option inquiry.

The Waterloo, Ont., BlackBerry maker is under review for its employee stock option practices. RIMM has said that it found some bookkeeping errors in its stock grant accounting and that it will have to restate some of its financial reports.

RIMM is one of dozens of companies being probed by regulators for possible stock-option backdating that may have help enhance the value of stock grants. The company's audit has prevented the filing of its fiscal second-quarter financial report and Canadian securities law requires RIMM to file an update every two weeks until the company is back in compliance.

RIM shares rose 19 cents to $124.30 in after-hours trading.