EDS settles case with SEC
Electronic Data Systems neither admits nor denies charges but agrees to pay a settlement to SEC
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
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.