94GETTY FORMS COMMITTEE TO INVESTIGATE SEC CHARGES
November 10, 2006
Getty Images, Inc. has announced that its board of directors has established a special committee to conduct an internal investigation relating to the Company's stock option grant practices and related accounting for stock option grants. This review is being conducted with the assistance of outside legal counsel retained by the special committee.
The Division of Enforcement of the Securities and Exchange Commission (the
"SEC") had earlier notified the Company that it is conducting an informal inquiry into the Company's stock option grant practices, and has requested that the Company provide the SEC with certain information relating to the Company's stock option grant practices. The Company is cooperating fully with the SEC in this informal inquiry.
The SEC has recently investigated dozens of companies. Some of the investigations are leading to criminal charges, but many turn out to be rather benign with no change in practices or further action required. At this time, the special committee has not completed its review of the Company's stock option grant practices.
Getty also said that until the special committee has completed its report, the Company will be unable to file its Quarterly Report on Form 10-Q for the period ended September 30, 2006. The Company intends to file its Form 10-Q as soon as practicable after the completion of the special committee's review.