Feeds

Nortel pays $35m to end fraud probe

Fund for shareholders

Combat fraud and increase customer satisfaction

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. ®

SANS - Survey on application security programs

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Oh no, Joe: WinPhone users already griping over 8.1 mega-update
Hang on. Which bit of Developer Preview don't you understand?
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Internet-of-stuff startup dumps NoSQL for ... SQL?
NoSQL taste great at first but lacks proper nutrients, says startup cloud whiz
IRS boss on XP migration: 'Classic fix the airplane while you're flying it attempt'
Plus: Condoleezza Rice at Dropbox 'maybe she can find ... weapons of mass destruction'
Ditch the sync, paddle in the Streem: Upstart offers syncless sharing
Upload, delete and carry on sharing afterwards?
New Facebook phone app allows you to stalk your mates
Nearby Friends feature goes live in a few weeks
Microsoft TIER SMEAR changes app prices whether devs ask or not
Some go up, some go down, Redmond goes silent
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.