Skip to Main Content

News Release

Printer Friendly Version View printer-friendly version << Back
March 16, 2007 at 8:51 PM EDT

Statement by Costco Wholesale Corporation Regarding Grand Jury Subpoena

ISSAQUAH, WA, Mar 16, 2007 (MARKET WIRE via COMTEX News Network) -- Costco Wholesale Corporation ("Costco") (NASDAQ: COST) ("the Company") released the following statement: On March 15, 2007, the Company was served with a grand jury subpoena from the United States Attorney's Office in the Western District of Washington. The subpoena seeks documents and information relating to the granting of stock options. The Company will cooperate fully with the inquiry. As the Company has previously reported, its Board of Directors appointed a special committee consisting of independent directors Daniel J. Evans, William H. Gates, and Charles T. Munger to review its historical stock option grant practices in order to determine if the stated grant dates were supported by the Company's books and records. While the special committee's review of the Company's stock option grant practices from 1996 to 2005 concluded that it was impossible to determine with precision the appropriate measurement date for certain grants for financial accounting purposes, the special committee determined that there was no evidence of fraud, falsification of records, concealment of actions or documentation, or intentional deviation from generally accepted accounting principles. The Company remains confident in the findings of the special committee.

Costco Wholesale Corporation
Richard Galanti

Bob Nelson

Jeff Elliott

SOURCE: Costco