Securities and Exchange Commission questions RIM - updated

Research in Motion has been dealing with a lot lately. They’ve got all of these new devices breathing hot air on the back of their necks, and now the SEC is taking charge of an inquiry regarding RIM’s stock option issues. This article is even saying it’s “becoming the most pervasive corporate scandal since the rash of accounting frauds that rang in the new millennium”.

The SEC is basically trying to light a fire here and get the documents RIM has promised for over a month now - no more ballyhoo. According to the source, no adjustments are expected to be made to RIM’s Q2 results reported on September 28. As long as all parties continue to co-operate, things should continue swimmingly.

From the Toronto Star:

The Ontario Securities Commission has ordered officer and insiders of BlackBerry maker Research in Motion Ltd. (TSX: RIM), including co-CEOs Jim Balsillie and Mike Lazaridis, to stop trading in the company’s stock after it missed financial reporting deadlines.

… “It would be prejudicial to the public interest to allow the respondents to trade in the securities of RIM until such time as all disclosure required by Ontario securities law has been made by RIM,” the commission said.

The order prohibits the RIM insiders from trading in the company’s stock until two full business days after the OSC receives up-to-date filings.

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Comments [6 Responses]

Thought
October 30th, 2006 at 11:01 pm

Follow the money…if and when a true problem exists, the market will signal that.

Right now money keeps going into RIM, and so the signal is thumbs up.

Money talks…and the rest is just noise.

BlackBerryCool » RIM to make December filing deadline
November 7th, 2006 at 1:18 pm

[…] A fire has been lit, apparently. RIM announced today that they expect to make the December 18th filing deadline on their second quarter results, says Bloomberg. There’s been a lot of activity, as reported, following RIM’s delay in filing their official numbers, all thanks to some wonky stock options from way back when. […]

BlackBerryCool » RIM files more files regarding Q2 & Q3 results
January 16th, 2007 at 8:16 am

[…] Whatever happened to due dates? If RIM’s filing of their Q2 results were an assignment, these folks would’ve flunked the course with all of the delays. But now, I suppose, some better news has surfaced (at least for the security commissions) as RIM has begun filing additional financial information to help move toward the end of this whole ordeal. “The filing is intended to provide shareholders with as much information as possible prior to the Company’s MD&A and consolidated financial statement filings and while its management-initiated, voluntary review of historical option practices is ongoing. Such Additional Financial Information includes a narrative explanation of RIM’s operating performance during those quarters and certain additional information relating to balance sheet accounts.” […]

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