Corinthian Conducts Review of Option Grants

Corinthian Colleges Inc. of Santa Ana said Wednesday that it was reviewing its employee stock option grants since its initial share sale in 1999.

Corinthian, owner of for-profit colleges, told the SEC in a filing that it was conducting an internal investigation. The review will be conducted by a special committee of independent directors, Corinthian said.

With its announcement, Corinthian joins at least 64 companies that are under scrutiny by regulators or are conducting internal probes.

Also Wednesday, Barnes & Noble Inc., the biggest U.S. book retailer, and Monster, operator of the Monster.com job-listing website, said they were being sued over allegedly improper option grants.

“We have no reason to believe there’s any issue at all, but given this environment and as a matter of good corporate governance, we’re going to look into it,” said Barnes & Noble spokeswoman Mary Ellen Keating.

Barnes & Noble was sued in New York state court by a shareholder claiming the company gave improper options to current and former executives, Barnes & Noble said. The company didn’t name the executives.

The lawsuit is the first time the bookseller has been accused of improper option grants, Keating said.

Monster said in a regulatory filing that it faced three new lawsuits related to its stock option grants: two suits in New York state court and a federal lawsuit involving the alleged backdating of stock option grants.