RIM's Internal Options Probe Nears Completion - TheStreet

RIM's Internal Options Probe Nears Completion

A special committee will soon disclose its recommendations.
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BlackBerry maker

Research In Motion's

(RIMM)

five-month-long investigation into its stock option grant practices could be drawing to a close.

"The company's management-initiated, voluntary review of stock option grants is ongoing and nearing completion," said RIM in its bi-weekly note to the Ontario Securities Commission.

Once the review is completed and the investigating committee's report is presented to RIM's board, the committee's recommendations will be disclosed, said RIM.

RIM shares were recently up 16 cents to $138.98 in extended trading.

RIM said on Sept. 28 that it had initiated the investigation voluntarily "following the heightened public awareness and concern regarding stock option grant practices by publicly traded companies."

The investigation process has, however, faced a fair share of hiccups. A Canadian pension fund, The Ironworkers Ontario Pension Fund, which owns a position in RIM worth slightly in excess of $ 1.75 million, recently

filed to open a shareholder lawsuit alleging the audit committee investigating the company's stock option grant practices

may not be truly independent.

In January, two members of the audit committee

recused themselves because of the concerns raised by the fund.

The audit committee of RIM's board had disclosed earlier that a restatement of RIM's historical financial statements will be required. RIM expects to file its financial statements for the second and third quarters of fiscal 2007 and any historical restatements before its fiscal year end of March 3.