Google Gets By Charges

    January 13, 2005

Google who was charged with failing to register over $80 million in employee stock options before its IPO, has settled without financial penalty.

With the settlement, however, Google and its general counsel David Drummond who believed that the company was exempt from the registration requirement agreed not to break such laws in the future.

A spokesman for Google said that Drummond has Google’s full support and will remain with the company.

Google’s founders had also done an interview with Playboy magazine in the spring which was not published until August just before the company’s IPO. This could have violated SEC rules that limit what can be said by company executives prior to its IPO, but the SEC has chosen not to pursue further action regarding this matter.

“We are pleased there will be no further proceedings regarding the Playboy article, and we are satisfied with the settlement on the stock option issues,” stated Google spokesman Steve Langdon.

The SEC has not commented on the Playboy matter.

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