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.


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
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
White Papers
Register for InformationWeek Newsletters
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Flash Poll