Investigation announced.

Investigation Announced: The Securities and Exchange Commission has launched a formal investigation into options backdating at KB Home. The probe comes at a crucial time for the company, which is struggling to rebound from a deep slump in housing construction and trying to develop a turnaround plan. The investigation centers on options to former Chief Executive Bruce Karatz, who had collected more than $232 million over three years mostly from option grants. An internal review found instances of inflated awards to Karatz.