Lucent Technologies agreed to a $25m settlement with US securities regulators related to a four-year probe of the company's financial practices, company and government officials said this evening.
Under the deal with the Securities and Exchange Commission, the telecom equipment maker will pay a previously announced civil penalty of $25m and avoid future violations.
The deal settles SEC allegations that Lucent fraudulently and improperly recognised $1.148 billion of revenue and $470m in profits during its fiscal year 2000.
'Companies whose actions delay, hinder or undermine SEC investigations will not succeed,' the SEC said. 'Stiff sanctions and exposure of their conduct will serve as a reminder to companies that only genuine cooperation serves the best interests of investors,' it added.
The company neither admitted nor denied wrongdoing.
'We are closing this chapter in our history, putting it behind us and focusing on moving our business forward,' chief executive Patricia Russo said.
The SEC had been investigating whether Lucent's former management improperly recognized sales in an effort to boost past financial results during the telecom boom. Several former executives could still be charged.
