THQ has become the latest publisher to receive a delisting warning from technology stock market Nasdaq, following similar letters
sent to Activision and
to Take-Two Interactive.
The reasons for the warning is the same for all three companies: the late filing of quarterly results. The warning was expected, and THQ has already requested a hearing with Nasdaq’s listing qualifications panel. The company recently revealed its
preliminary quarterly results in which revenues rose by 68 percent to $240.2 million, but the all important 10-Q financial form has not yet been filed.
The underlying reason for the delay is also identical to Activision and Take-Two, with THQ currently embroiled in an internal investigation, with independent legal counsel and outside accountants, into the company’s measurement dates for stock option grants issued in the past.
All three companies, along with 180 other American firms from various industries, are being
investigated by the American Securities and Exchange Commission (SEC) over alleged irregularities in stock option grant practises. Many firms have been accused of “backdating” stock option grants to a time when share prices were lower, thus increasing their sale price value.
