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i2 settles securities case

Supply chain management software supplier i2 Technologies has reached a $10m settlement in a US Securities and Exchange Commission investigation into alleged violations of federal securities law.

The SEC has alleged that i2 improperly recognised software licensing revenues during its 1999 to 2002 financial years, a claim that i2 neither admits to nor denies in the settlement, said i2 spokeswoman Melanie Ofenloch.

The settlement comes one month after company shareholders were paid $85m in a class action lawsuit settlement over similar allegations.

The SEC launched its probe in April 2003. Five months later, i2 restated financial results for the four years in question, a restatement that reduced the company's total reported revenue for the period by nearly $360m.

The SEC's $10m civil penalty will be distributed to i2 shareholders, although exactly who will receive the money has yet to be determined, Ofenloch said.

Robert McMillan writes for IDG News Service


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