Reuters is reporting that THQ has cleared itself of stock options fraud.

The company appointed a special, independent investigation to look into its stock options granting practices and today they reported that they found "no evidence of fraud or misconduct."

The story is a real snoozer and chock full of meaningless quarter references and the word "fiscal" is used like a bazillion times, but if you're interested hit the jump for the entire Reuters story. Brian Crecente

NEW YORK (Reuters) - THQ Inc. (THQI.O) said an independent investigation of its stock options granting practices found no evidence of fraud, but the video game maker will record an $11 million non-cash charge for incorrect measurement dates.

A special committee appointed by the board found "no evidence of fraud or misconduct," the company said on Tuesday.

It identified instances in which the company "misapplied GAAP by using incorrect measurement dates for financial accounting and reporting purposes on a number of occasions."

The $11 million after-tax charge covers the period of January 1, 1996 to March 31, 2006, THQ said in a statement.

The adjustments, after-tax for fiscal 2007, were immaterial and will be reflected in the company's quarterly report for the period ended September 30, 2006, THQ said.

For each of the 2006, 2005 and 2004 fiscal years, the adjustments were about $2 million and will be reflected in the company's amended annual report for the fiscal year ended March 31, 2006, THQ said.

The information in the reports for the fiscal years 2002 to 2006 and the quarters in fiscal 2006 and 2005 should no longer be relied upon, the company also said.

The committee recommended ways to improve the company's procedures for granting and administering stock options, which the board adopted and the company is implementing, THQ said.

It also said the company informed the U.S. Securities and Exchange Commission of the committee's findings and is continuing to work with the SEC.

THQ expects to file its March 31, 2006 10-K/A and its September 30, 2006 10-Q with the SEC by January 19. Once it makes those filings, it believes it will regain compliance with the Nasdaq stock market's listing requirements, the company said.

THQ finds no options fraud, will restate [Reuters]

Contact information for this author is not available.