McAfee pays out $50m for financial misstatements


McAfee pays out $50m for financial misstatements

Antony Savvas

McAfee has agreed to pay the US Securities and Exchange Commission (SEC) $50m (£30m) to settle charges that it overstated sales and profits by hundreds of millions of dollars from 1998 to 2000.

After an investigation, the SEC said that during that period McAfee inflated its cumulative net sales by $622m. For 1998 alone, the company is said to have overstated revenue by $562m, representing a 131% misstatement.

McAfee has settled with the SEC without admitting or denying the regulator's allegations, said the SEC. A court has to approve the settlement.

McAfee, which is the second-largest security software company behind Symantec, said last autumn that it had put aside $50m for a proposed settlement.

McAfee chief executive officer George Samenuk said, “We are pleased to be able to reach this settlement and will take this opportunity to reinforce and further institutionalise the strong message of putting ethics first.”

Samenuk joined McAfee in 2001, after the financial misstatements were made.

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