Hot Topic Faces Options Lawsuit

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Some executive officers and members of the board of directors of Hot Topic Inc. were named Monday in a lawsuit over the company’s option practices, a New York-based law firm announced.


The firm, Stull, Stull & Brody, said the complaint alleges that certain current and prior officers and directors manipulated the prices of executive and director stock option grants.


The law firm also said that it is investigating more than fifty other companies that have either received a letter from the Securities and Exchange Commission, have been contacted by U.S. Attorney’s Offices, are being investigated by the Justice Department and/or the Internal Revenue Service or have announced an internal investigation.


A call to Hot Topic was not immediately returned for comment.


Shares in hot Topic were up 6 cent to $10.36 early Tuesday.

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