The error, confirmed in a Securities and Exchange Commission filing, relates to over 23.2 million shares of common stock and 5.6 million outstanding stock options that the company has issued to employees and consultants since September 2001, but neglected to register with securities regulators – potentially violating federal securities laws and those of 18 states, including New York, California and Virginia.
The search giant is hoping to buy back the stock to minimise any legal repercussions.
The offer to buy back the shares and stock options will remain open until September, and is likely to cost the company around $25.9 million, according to reports. This represents a small handout in terms of Google's cash reserves of $549 million.
But not all shareholders are playing ball, and some may be planning to sue the company, according to reports.
According to The Wall Street Journal today, Google is also having problems with its innovative IPO auction, which requires participating brokerage houses to use different technologies.
Registration for the $3 billion auction began last Friday. When the auction begins, bidding will last several days.
