Aliso Viejo-based Quest Software Inc. is just around the corner from ending its long stock options ordeal.
The maker of business software said Tuesday it’s set to settle a two-year long probe into stock options backdating with the Securities and Exchange Commission.
Quest agreed to settle with the SEC without admitting or denying charges.
Under the terms of the settlement, which is subject to final approval by the SEC, Quest won’t be sued for fraud and won’t be required to pay fines.
The settlement also absolves Chairman Vinny Smith, who was chief executive during the options misdating and probe, from any responsibility.
Earlier this year, Quest took charges to past earnings of about $137 million to account for backdated options. The probe covered grants from 1998 to 2005.
Back in March, Smith received what’s known as a Wells notice from the SEC stating its intention to sue him, the company and some employees for possible violation of securities laws relating to misdated stock options.
Former chief financial officers Brinkley Morse and John Laskey and employee Kevin Brooks also received Wells notices at the time.
The company makes software that improves on or helps manage other business programs from Oracle Corp., Microsoft Corp. and others.
Investors sent the company’s shares down Tuesday after a Goldman Sachs analyst downgraded the stock on concerns about technology spending by the Quest’s customers.
Analyst Sarah Friar rated Quest as “neutral,” down from “buy” and cut her price target to $13 per share, down from $16.
Quest’s stock was trading at around $12 per share on Tuesday.
Quest’s shares closed down 4% on a recent market value of about $1 billion.
