Lucent Technologies today said that the Securities and Exchange Commission (SEC) announced the final approval of its settlement agreement with the company. Today’s actions conclude the Commission’s investigation into the revenue recognition issues that Lucent brought to its attention in late 2000.
“Since bringing this matter to the SEC’s attention, we have addressed these issues with increased controls and disclosures in our organization,” said Patricia Russo, chairman and CEO of Lucent Technologies. “We are closing this chapter in our history, putting it behind us and focusing on moving our business forward.”
The SEC filed a complaint and final judgment in Federal District Court in Newark, N.J., today that confirms the terms of an agreement in principle that was first announced on Feb. 27, 2003, and revised on March 17, 2004. Under the terms of the final judgment, the company will pay a $25 million civil penalty, but will not be required to make any financial restatements. Without admitting or denying any wrongdoing, Lucent said it consented to the settlement enjoining the company from future violations of specific provisions of the federal securities laws.