SEC Launches Formal Probe of KB Homes' Options Practices
KB Home said Friday the Securities and Exchange Commission has launched a formal investigation into the homebuilder's stock-option granting practices.
In a regulatory filing, the company said it is cooperating with the SEC on this matter.
In August, KB Home received an informal inquiry from the SEC relating to its option practices. About 107 companies are currently under SEC and or DOJ scrutiny for possibly backdating stock-option grants, and at least 92 other companies not facing a federal probe have launched or completed internal reviews into their stock options practices.