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Brief: Sycamore Networks Receives Grand Jury Subpoena

The networking company, which is already under investigation by the SEC, has also been asked by the U.S. Attorney's Office for Massachusetts for documents related to the company’s stock option practices.
MANHASSET, N.Y — Sycamore Networks Inc. has been served a grand jury subpoena by the U.S. Attorney's Office for the District of Massachusetts, requesting documents related to an ongoing investigation of the company’s stock option practices, the company reported in its 8-K regulatory filing dated May 30.

Sycamore (Chelmsford, Mass.), is already under formal investigation by the Securities and Exchange Commission staff for its accounting for stock options from 1999 to 2001. The company said it is cooperating with both the SEC and U.S. Attorney Office on the investigation.

Sycamore is one of a growing number of companies under investigation for its practices related to issuing stock options. The company reported it recently finished an independent investigation into its stock option accounting and restated results from 2000 to 2004 and for the first two quarters of 2005.