End looms for Lucent SEC probe
Lucent Technologies, the one-time darling of the US telecoms sector, has reached an agreement in principle with the Security and Exchange Commission.
Lucent has been under investigation from the SEC since November 2000 when it admitted certain ‘revenue recognition issues that it publicly disclosed and brought to the SEC’s attention’.
Under the agreement in principle, the company would pay no fines or penalties. Neither would it be required to make any financial restatements. ‘What it means is that we are hopefully drawing a line under the matter,’ said a Lucent spokesman.
The two and a half year investigation has been a distraction that Lucent could have done without in a telecoms climate best described as catastrophic.