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26 Sep 2007
A US data systems company has agreed to pay $500,000 in settlement to the Securities and Exchange Commission which investigated the company for accounting and securities violations.
The irregularities are alleged to have occurred between 2001 and 2003 at Electronic Data Systems.
According to the SEC, EDS failed to make full disclosure of the costs of some derivatives contracts, used faulty assumptions to estimate revenue and expenses for large contracts, and also failed to adequately disclose an 'extraordinary transaction' with a major customer, which boosted the company's cash flow by $200m.
A former employee of the company is also alleged to have made bribes to officials in India.
As part of the settlement, EDS has neither admitted nor denied the charges.
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