Western Digital Corp. said Wednesday it may have discovered irregularities with its stock options grants and is delaying its annual filing with the Securities and Exchange Commission.
The Lake Forest-based disk drive maker said a directors committee’s initial investigation showed that “measurement dates for accounting purposes may differ from recorded dates used for certain grants made from fiscal year 1999 through fiscal year 2003.”
The company’s review isn’t finished yet, Western Digital said.
The company first said in late July that the it had appointed the committee to look into the timing of options grants, which have been the subject of a growing controversy on Wall Street.
Backdated options can give executives instant paper profits.
The company said it plans to file an annual report with the SEC as promptly as it can after the completion of the committee’s review.
Western Digital’s stock was flat in afterhours trading.
