Did Google Issue Illegal Stock Shares?
Google Inc., according to the AP wire, may have illegally issued more than 23 million shares of its stock to hundreds of employees and consultants, putting a legal risk into the launch of their IPO.
Google disclosed the possible stock violations Wednesday in an offering to buy back the affected shares and outstanding stock options for a total of $25.9 million, including interest payments.
AP Reports:
But it’s uncertain whether the gesture will satisfy everyone affected by potential bureaucratic blunders that occurred from September 2001 through June 2004.
During that time, the company says it neglected to register 23.2 million shares of common stock and 5.6 million outstanding stock options with securities regulators. The oversights might have broken federal and state laws, according to Wednesday’s filing. The affected common stock is owned by 1,105 current and former employees, as well as company consultants.
Google warned that its buyback, or “recission,” offer may be rejected by some people who prefer to sue the company. Google believes it faces potential liabilities in 18 states and the District of Columbia, as well as federal court.
