March 14, 2005

SCO Group restatement woes may be shady but not necessarily fraudulent

Author: Melanie Hollands

SCO Group has been ordered by the Securities and Exchange Commission to restate its financials, in part because SCO had not fully complied with certain securities laws. SCO will restate numbers for the fiscal quarters ending January 31, 2004; April 30, 2004; and July 31, 2004.

Recall that SCO has issued stock- and option-based compensation to certain employees during these periods. In April last year, this column had discussed an April 20, 2004, options grant to certain SCO employees and what could potentially have been questionable about that particular transaction.

The restatements will involve SCO doing the following:

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