Human Capital & Careers

Black Box Receives SEC Subpoena

The tech company's stock-option woes continue as the regulator steps up its investigation.
Stephen TaubJune 1, 2007

Black Box Corp. has received a subpoena from the Securities and Exchange Commission related to its stock-option practices. The announcement on Friday comes a week after the provider of data and voice-networking products revealed the regulator had opened a formal investigation into the matter.

Black Box — which earlier this year disclosed that it would restate 15 years of earnings because of incorrectly priced stock options — also recently announced that Fred C. Young had resigned as chief executive officer and as a member of the board. The company has not given a reason for Young’s departure.

In November Black Box announced that the SEC had launched an informal inquiry relating to its stock-option practices. A few months later, the company announced that it would record added noncash charges for stock-based compensation expense dating back to 1992. Black Box estimated those charges at $63 million, pretax.

In its latest SEC filing, Black Box said it will cooperate with the commission’s investigation. The company also said it would not file its annual report for the fiscal year ended March 31 on time.