Risk & Compliance

Prosecutors Drop Equinix Options Probe

SEC concluded its own investigation last month and recommended no enforcement action.
Stephen TaubJanuary 17, 2007

Equinix announced that the U.S. Attorney for the Northern District of California has withdrawn its grand jury subpoena requesting documents relating to the company’s stock option grants and practices.

The telecommunications company, which provides data centers and Internet exchange services, was one of more than 20 companies facing backdating investigations that were singled out in a June 2006 report by The Corporate Library for having directors in common with other companies under investigation.

That same month, Equinix disclosed that the Securities and Exchange Commission had begun an informal inquiry into its stock options. Its audit committee completed an internal review and analysis of its past option practices in August.

Last month, the SEC concluded its investigation of Equinix’s stock option grants and practices and recommended no enforcement action.

Approximately 200 companies have disclosed federal or internal probes into their stock options grants, according to the Associated Press.