IRVING, Texas (AFX) - Arts and crafts retailer Michaels Stores Inc. said Friday it received a grand jury subpoena for documents related to its stock option practices from 1996 to the present.
The company said on June 8 an internal committee would review the company's stock option practices, primarily focusing on the years 1990 through 2001.
Michaels Stores is one of more than 40 companies that are under investigation by the Securities and Exchange Commission or federal prosecutors for questionable stock option granting practices. The allegation is that they backdated stock option grants to coincide with share price lows to increase gains when the stock was sold.
On Thursday, Michaels said it was asked by the SEC to preserve all documents pertaining to stock option grants since 1990. The company also said it understated compensation between 1990 and 2001 by about $60 million.
Michaels closed down 52 cents at $37.93 on the New York Stock Exchange.
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