SEC Launches Formal Probe Of Home Builder

Law360, New York (January 26, 2007, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has begun a formal investigation into KB Home’s stock option practices, the company revealed in a financial filing Friday.

The nation’s fifth-largest homebuilder said in August that the SEC had sent it an informal inquiry. But in its filing with the SEC on Friday, the company said that the investigation had proceeded.

“The company has cooperated with the SEC regarding this matter and intends to continue to do so,” KB Home said.

In November, the chairman and chief executive of...
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