Telecommunications equipment vendor, Lucent Technologies, has reached an agreement in principle with the staff of the US Securities and Exchange Commission (SEC) to resolve the SEC investigation of the company.
Lucent would not have to pay any fines or penalties or make any financial restatements under the deal, which is subject to the final approval of the commission, according to a company statement.
The deal enjoins Lucent from future violations of the anti-fraud, reporting, books and records and internal control provisions of federal securities laws.
In November and December 2000, Lucent announced it had found accounting problems and adjusted downward its revenue for the fiscal fourth quarter of 2000, ended September 30. The SEC subsequently began an investigation of the company.
According to news reports in November 2002, the investigation had extended beyond the 2000 revision, probing earlier accounting practices and financial charges by the company, including one from 1995.
At the time, a company spokesman said that Lucent had no reason to believe that the SEC had expanded the investigation.