Activision backdating

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Spring-loading is when a company issues options to employees right before a favorable announcement about the company is about to come out.

The mean estimate from a Thomson Financial poll was for sales of 4.7 million.An Activision shareholder has sued the video game maker over its stock option grant practices alleging improprieties in the company's issuance of stock options and targeting both former and current executives in the latest backdating scandal.The lawsuit alleges that Activision backdated its stock options to the financial benefit of numerous executives and the detriment of the company and its shareholders.In early June 2007, the SEC informed us that the SEC has issued a formal order of non-public investigation, which allows the SEC, among other things, to subpoena witnesses and require the production of documents. Department of Justice has attended certain of these meetings and requested copies of certain documents that we have provided to the staff of the SEC.The Company is cooperating with the SEC’s investigation, and representatives of the Special Subcommittee and its legal counsel have met with members of the staff of the SEC on several occasions, in person and by telephone (as has the Company’s outside legal counsel), to discuss the progress of the Special Subcommittee’s investigation and on February 28, 2007 to brief the SEC staff on the Special Subcommittee’s findings and recommendations following the substantial completion of the Special Subcommittee’s investigation. At this time, the Company has not received any grand jury subpoenas or written requests from the Department of Justice.

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