Redwood City-Based EA Cleared in SEC Options Probe

Redwood City, Calif. -- Electronic Arts (EA), the lRedwood City-based developer and publisher of video games, said that the Securities and Exchange Commission (SEC) has terminated its enquiry into the company's stock options grant practices, and recommended no enforcement action. Fellow game publishers Take-Two Interactive, Activision and THQ are also being probed by the SEC over the same issue, with several top former executives at Take-Two pleading guilty to related criminal charges. Separately, EA said that it will shutter its Chicago office, which has developed the company's "Fight Night" and "Def Jam" franchises. EA spokesman Jeff Brown told the Associated Press that the company will offer relocation opportunities and severance packages to many of the 150 affected employees. The company added that it has no further plans to close any offices, other than a previously announced merging of two studios in England.
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