SEC slaps admin order on IBM
Probe dropped after two years - no admissions or denials
IBM has struck a deal with the SEC under which it promises not violate to security laws - not that it's admitting or denying that it’s ever done such a thing in the past.
The deal closes an investigation by the SEC sparked by the IT giant’s expensing of equity compensation in its Q1 2005 earnings announcement. That quarter's profits came in under expectations.
Announcing the closing of the investigation, IBM said it had agreed to an administrative order by the SEC to “cease and desist from committing or causing any violations of certain of the reporting provisions of the federal securities laws and related SEC rules.” This was done without admitting or denying any wrongdoing.
IBM adds that the SEC’s order “contains no finding of securities fraud or violation of any antifraud provision” and that there were no fines or penalties.
In case you forgot why the SEC kicked off the investigation in the first place, here’s a refresher.®