Aliso Viejo-based Quest Software Inc. and employees including Chief Executive Vinny Smith have received notice that the Securities and Exchange Commission plans to sue the company for possible violation of securities laws relating to misdated stock options.
The company, Smith, former chief financial officers Brinkley Morse and John Laskey and employee Kevin Brooks received Wells notices from the SEC, according to Quest.
The notices indicate that regulators plan to recommend civil action and give the recipients a chance to respond before a final decision is made.
Last year, executives at Irvine chipmaker Broadcom Corp., including chairman Henry Samueli, received Wells notices for options backdating at their company.
Quest finished a probe of options backdating earlier this year with charges to past earnings of about $137 million. The probe covered grants from 1998 to 2005.
The company makes software that improves on or helps manage other business programs from Oracle Corp., Microsoft Corp. and others.
