St. Petersburg, Fla.-based EMS provider Jabil Circuit Inc. said Wednesday that it has conducted an internal investigation of its stock option grant practices and found no issues of backdating or improper actions.

This came as the company also acknowledged that the U.S. Securities and Exchange Commission is conducting an informal investigation of Jabil, among others. An article published in the Wall Street Journal on March 18 called into question option practices of a number companies including Jabil for the period of 1995 through 2002.

The Journal piece specifically questioned the timing of stock option grants to the CEOs of the companies in question. Among the other companies and executives whose option grants caught the attention of the Journal were Vitesse Semiconductor founder and CEO Louis Tomasetta and Brooks Automation's former CEO Robert Therrien.

A preliminary review by a committee of Jabil board of directors and a separate management review determined Jabil's management and Jabil board of directors have not backdated options for any of its officers or directors, the company said. The review also affirmed that the appropriate documentation was completed and filed.

The company was contacted late Tuesday evening by the Securities and Exchange Commission (SEC) who said they were calling in response to media reports on backdating options, according to Jabil. The SEC said it will be asking the company for certain documents as part of an informal inquiry. Jabil said it will cooperate fully with the SEC.

In addition, a complaint was filed in Pinellas County, Florida Circuit Court against Jabil on April 26. The complaint, filed by a Jabil shareholder against certain executives and certain directors of the company alleging a breach of their fiduciary duties during the period 1998 through 2004. The suit appears to have been filed in reaction to the Journal article, according to Jabil.

By: DocMemory
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