SEC fines Lucent Technologies $25 million

Tue., May 18, 2004

Associated Press

WASHINGTON — Federal regulators charged nine former and current Lucent Technologies Inc. executives with securities fraud Monday and fined the company $25 million in a settlement, saying Lucent failed to cooperate fully in an accounting investigation.

The Securities and Exchange Commission also charged a former official of Winstar Communications with securities fraud and aiding and abetting Lucent’s alleged violations of securities laws in the accounting irregularities.

In a civil lawsuit filed in federal court in Newark, N.J., the SEC alleged that Lucent “fraudulently and improperly” booked some $1.1 billion in revenue in 2000.

The executives, pushing to increase revenue, meet sales targets and reap sales bonuses, failed to disclose incentives that Lucent gave customers to induce them to buy its products, the SEC said in the suit.

Lucent, based in Murray Hill, N.J., neither admitted to nor denied wrongdoing in its settlement.

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SEC fines Lucent Technologies $25 million

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