KB Home Reports SEC Inquiry

KB Home has been notified by the Los Angeles regional office of the Securities and Exchange Commission that the SEC will conduct an informal inquiry into the Los Angeles-based homebuilder's stock option grants, according to the company.KB Home said it has informed the SEC of the status of an internal review by a committee of its board of directors in conjunction with outside legal counsel. The company said it "intends to cooperate fully" with the inquiry. KB Home also announced that three shareholder derivative suits have been filed in the past two months against the company and certain of its directors and officers. "The suits generally allege breach of fiduciary duty in connection with the company's stock option grants," KB Home reported. The company said it is evaluating the suits and does not intend to comment on them other than through the filing of responses in court. KB Home can be found online at http://www.kbhome.com.