Vitesse to Restate

The chip company is hammered as an options scandal unfolds.
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Vitesse (VTSS) plunged 24% after saying it would have to restate three years' worth of financial results as it grapples with a stock option scandal.

The Camarillo, Calif., chip company hired turnaround specialist Alvarez & Marsal and named Alvarez partner Shawn CA Hassel as acting chief financial officer. Two weeks ago, the company put three top execs on leave as its board looks into allegations that top managers received improperly granted stock options.

"In the course of its investigation, issues have arisen relating to the integrity of documents concerning the Company's stock option grants," Vitesse said Thursday of the inquiry being undertaken by a special panel of its board.

Vitesse, which fetched more than $3 before the probe began earlier this month, plunged 58 cents to $1.93.