Biotech Values

[DewDiligence]

Whole Foods Launches Probe Into CEO's Online Posts

[Instead of probing, the BoD could simply take action and replace the CEO.]

http://online.wsj.com/article/SB118470129494469198.html

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By DAVID KESMODEL
July 17, 2007 4:58 p.m.

Whole Foods Market Inc.'s board of directors said today that it has formed a special committee to conduct an internal investigation into the anonymous online postings made by the company's chairman and chief executive officer, John Mackey, over a roughly eight-year period. Mr. Mackey apologized for his actions.

"I sincerely apologize to all Whole Foods Market stakeholders for my error in judgment in anonymously participating on online financial message boards," Mr. Mackey said. "I am very sorry and I ask our stakeholders to please forgive me."

The company also confirmed that the Securities and Exchange Commission had contacted the company about its informal investigation into the company. Whole Foods will fully cooperate with the probe, it said.

The board didn't elaborate beyond a news release issued today. The committee has retained the firm Munger, Tolles & Olson LLP to advise it during the probe.
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