RIMM Analysts Ignore Governance

Research in Motion (RIMM) announces that a review of stock options will most certainly result in restatement of previous earnings in the range of $25 to $40 million. Management is convinced that there will be no material changes to current earnings. In the conference call transcript carried by Seeking Alpha it is obvious that none of the analysts considered the topic. The focus was on short-term issues. No one asked about governance ramifications. While management is to be applauded because they initiated the investigation, sell-side-analysts want to look the other way. Or at least not say anything in public.