American Tower Hit By Suits Over Stock Option Practices
May 30, 2006 at 9:10 AM (PT)
AMERICAN TOWER has disclosed that it has become the target of two suits in MASSACHUSETTS regarding the stock option practices that have drawn SEC and DEPARTMENT OF JUSTICE scrutiny.
The company, under investigation for the procedures by which it grants stock options to its executives, has previously said that it has initiated an internal investigation and is cooperating with the probes, and has been subpoenaed by the U.S. Attorney for the Eastern District of NEW YORK for documents relating to the allegations. One of the suits was filed as a securities class action and the other was filed as a shareholder derivative lawsuit.