MARLBOROUGH, Mass. (AFX) - Pharmaceutical company Sepracor Inc. said Friday the Securities and Exchange Commission asked for company documents related to the company's stock option granting practices.
Sepracor is the latest company involved in a growing investigation by the SEC and other federal agencies and investigators looking into how company executives received stock options. At issue in several cases is whether the companies backdated stock options -- that is, dated them in such a way that they purposefully coincided with a low for the stock price, allowing executives to cash out at a higher price later.
The company said it is cooperating with the SEC and has set up a special committee on its board to oversee the review of documents in regard to stock option grants.
Shares of Sepracor fell 12 cents to close at $51.20 on the Nasdaq.
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