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.