J2 Finds Options Errors, May Restate

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J2 Global Communications Inc. said Friday that it uncovered accounting errors on past stock option grants and may record additional stock-based compensation expenses. The company also said to may need to restate previous earnings as well.


The Los Angeles-based telecom provider said the special committee appointed by the company completed the investigation, and found no willful backdating of stock option grants.


However, the company also said that the review found errors on measurement dates for grants issued to all levels of employees and said it expects to record stock-based compensation expenses in addition to general and administrative cash expenses related to the investigation.


J2 added it is considering whether it may need to restate past results, a decision it will make over the next few weeks.


J2 is one of nearly 200 public companies that have launched internal investigations or are under review by federal regulators for possibly backdating stock option grants.


Shares in J2 were up 29 cents to $28.50 early Friday.

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