The SEC has been investigating THQ since 2006 over allegations that the company was “backdating” their stock option grants to allow for higher sales prices, but they have decided not to recommend any action be taken against THQ. It is not clear at this time whether this is a positive finding, meaning they have ruled out any wrongdoing by THQ, or simply a recommendation based on lack of discoverable evidence. An article at Games Industry discusses the matter further.
This is good news for THQ in the current business climate. Any action by the SEC against them would have further given the marketplace the impression that the company is ripe for acquisition. With EA prowling the waters like a Tiger Shark on a feeding frenzy, that would be the equivalent of THQ slathering itself in chum and jumping into the water in a seal costume.
Another interesting detail from the article is the fact that Activision and Take-Two are being investigating for the same practice. There is no word yet on whether those investigations will result in action against the companies.
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