Lucent deal will end US financial probe

Telecommunications equipment company Lucent Technologies has reached an agreement in principle with the US Securities and...

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.

Read more on IT risk management

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close