SEC Fines Lucent $25 Million - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure

SEC Fines Lucent $25 Million

The penalty is a settlement of civil fraud allegations because the company failed to fully cooperate in an investigation of its accounting,

WASHINGTON (AP) _ Lucent Technologies Inc. was fined $25 million by securities regulators Monday in a settlement of civil fraud allegations because it failed to fully cooperate in an investigation of its accounting.

The Securities and Exchange Commission also charged ten former executives of the telecom equipment maker for alleged participation in accounting irregularities in 2000, the company announced. The agency alleged that Lucent improperly booked $1.1 billion in revenue in 2000.

Lucent, based in Murray Hill, N.J., neither admitted to nor denied wrongdoing in its settlement with the SEC.

The settlement resolves an SEC investigation that began in late 2000, when Lucent disclosed that it had prematurely booked $679 million in revenues.

The company reached a tentative settlement agreement in February 2003. The SEC initially found Lucent to be cooperative and did not intend to fine the company but only to issue a cease-and-desist order against it. But the company's subsequent lack of cooperation prompted the agency to levy a fine, the source said.

The SEC is sending a message to corporate America that insufficient cooperation will be punished. In March, the agency fined Banc of America Securities, a division of Bank of America Corp., $10 million because it allegedly failed to promptly furnish documents requested by SEC attorneys. That amount already was a record fine for a violation of that type.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Slideshows
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
News
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Commentary
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll