The Sunrise Assisted Living Inc. board has appointed a special independent committee to review recent insider sales of Sunrise stock, as well as the company’s historical practices related to stock option grants, the company announced.
The move followed a request by an investor, the SEIU Master Trust, to investigate “concerns about insider stock sales, questionable accounting practices and improbably-timed stock option grants.” The request said the company’s failure to file financial statements for the first three quarters of 2006 prompted its concerns. Sunrise officials said they expect to be current in their filings with the Securities and Exchange Commission by March. 1.
Media reports after the SEIU Master Trust letter led the SEC to make inquiries, the company said. The special committee has retained independent outside legal counsel to assist in its review.