BusinessCompany NewsLucent pays £14m to settle SEC accounts probe

Lucent pays £14m to settle SEC accounts probe

Technology giant Lucent has paid a $25m (£14m) settlement claim after being accused of a $1.1bn accounting fraud by the Securities & Exchange Commission.

Link: End looms for Lucent SEC probe

The SEC charged Lucent Technologies with ‘securities fraud, and violations of the reporting, books and records and internal control provisions of the federal securities laws’.

Lucent ‘fraudulently and improperly recognized approximately $1.148bn of revenue and $470m in pre-tax income during its fiscal year 2000,’ the SEC alleged in a statement.

In addition nine current and former Lucent officers, executives and employees, and one former Winstar Communications Inc. officer were charged with securities fraud and aiding and abetting Lucent’s violations of the federal securities laws.

Lucent and three of the former Lucent employees agreed to settle the case without admitting or denying the allegations. As part of the settlement, Lucent agreed to pay a $25m penalty for its lack of cooperation.

‘Companies whose actions delay, hinder or undermine SEC investigations will not succeed,’ said Paul Berger, associate director of enforcement.

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