Feeds

Nortel pays $35m to end fraud probe

Fund for shareholders

Build a business case: developing custom apps

Nortel has agreed to pay $35m in damages to shareholders hurt by the company's fraudulent accounting practises.

The Securities and Exchange Commission (SEC) accused Nortel of falsely inflating revenues between 2000 and 2003 in order to ensure the company hit Wall Street targets.

Nortel neither admits nor denies the charges, but is paying $35m into a fund to compensate shareholders.

After the SEC filed civil fraud charges against Nortel yesterday the company agreed to settle. According to a statement on the SEC website: "Nortel has agreed to settle the commission's action by consenting to be permanently enjoined from violating the anti-fraud, reporting, books and records and internal control provisions of the federal securities laws and by paying a $35m civil penalty,"

The company also agrees to meet regulators every quarter to update them on progress. The statement continues: "As part of the settlement, Nortel agrees to report to the commission staff every quarter until it fully implements its remediation programme, and the company and its outside auditor agree that the existing material weakness has been resolved."

The SEC statement is here. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Whoah! How many Google Play apps want to read your texts?
Google's app permissions far too lax – security firm survey
Chrome browser has been DRAINING PC batteries for YEARS
Google is only now fixing ancient, energy-sapping bug
Do YOU work at Microsoft? Um. Are you SURE about that?
Nokia and marketing types first to get the bullet, says report
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
OpenWRT gets native IPv6 slurping in major refresh
Also faster init and a new packages system
Google shows off new Chrome OS look
Athena springs full-grown from Chromium project's head
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.