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Tuesday, Jun 16, 2026

Corinthian Faces SEC Options Inquiry

Corinthian Colleges Inc. said Friday that the Securities and Exchange Commission had launched an informal inquiry into the company’s accounting for stock option grants.

The Santa Ana-based operator of for-profit schools had said in July that it had set up a committee of independent directors to review its past stock option grants.

Corinthian said the review is ongoing, and that it plans to release a statement when it’s finished.

The company also said it faces two shareholder lawsuits, accusing the company, its directors and officers of breaching their duties with respect to the stock option grants.

Scores of companies in the U.S. have announced investigations into their stock option grant accounting during the past few months.

In Orange County, Broadcom Corp. and Meade Instruments Corp., both of Irvine, and Aliso Viejo-based Quest Software Corp. are looking into their stock option grant practices.

Corinthian shares were off about 3% to $12.46 on Friday.

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