Telecommunications equipment company Lucent Technologies
has reached an agreement in principle with the US Securities and
Exchange Commission to resolve an SEC investigation into its
accounting practices.Lucent would not have to pay any fines or
penalties or make any financial restatements under the deal, which
is subject to the final approval of the commission, according to a
company statement. The deal enjoins Lucent from future violations
of the antifraud, reporting, books and records and internal control
provisions of federal securities laws.
In November and December 2000, Lucent
announced it had found accounting problems and adjusted downward
its revenue for the fiscal fourth quarter of 2000, ending 30
September. The SEC subsequently began an investigation of the
company.
According to news reports last November, the investigation had
extended beyond the 2000 revision, probing earlier accounting
practices and financial charges by the company, including one from
1995. At the time, a company spokesman said Lucent had no reason to
believe that the SEC had expanded the investigation.