Costco Gets Subpoena on Options
ISSAQUAH, WA -- Costco Wholesale Corp. said on Friday it had been served with a Grand Jury subpoena from the U.S. attorney's office in Washington State, seeking documents and information relating to the granting of stock options.
The warehouse club operator said it is cooperating with the investigation. It had completed an internal investigation via a special committee that it said had found no evidence of fraud.
In a statement, the warehouse club chain here said: "While the special committee's review of the Company's stock option grant practices from 1996 to 2005 concluded that it was impossible to determine with precision the appropriate measurement date for certain grants for financial accounting purposes, the special committee determined that there was no evidence of fraud, falsification of records, concealment of actions or documentation, or intentional deviation from generally accepted accounting principles. The Company remains confident in the findings of the special committee."
The warehouse club operator said it is cooperating with the investigation. It had completed an internal investigation via a special committee that it said had found no evidence of fraud.
In a statement, the warehouse club chain here said: "While the special committee's review of the Company's stock option grant practices from 1996 to 2005 concluded that it was impossible to determine with precision the appropriate measurement date for certain grants for financial accounting purposes, the special committee determined that there was no evidence of fraud, falsification of records, concealment of actions or documentation, or intentional deviation from generally accepted accounting principles. The Company remains confident in the findings of the special committee."