SEC is investigating if MCI WorldCom misled investors about deal for Skytel
Article Abstract:
The Securities and Exchange Commission is investigating whether MCI WorldCom Inc. misled investors in its apparent denial that it planned to acquire Skytel Communications Inc., according to someone familiar with the situation. MCI's statement of May 25 came three days before it announced the pact to buy the wireless paging firm for $1.3 billion. The news release was prompted after an Internet business-information service called Company Sleuth reported that MCI had registered the Internet domain name 'skytelworldcom.com.' Skytel's stock then jumped up as much as 16% during the day, closing up 6%, as trading in the stock jumped to 7.4 million shares, three times its normal amount. The firm could have declined to comment, a strategy used by many companies involved in merger talks, but in deciding to respond publicly, it was required to make a complete, truthful statement. The SEC is determining if MCI intended to mislead investors and, as part of its investigation, will request from MCI all documents pertaining to the negotiations with Skytel to figure out who had knowledge of the situation and at what time. The authorship of the statement will also be a determining factor in whether the firm violated any securities laws.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Lucent links whistle-blower to discrepancies
Article Abstract:
Lucent Technologies Inc. has accused former employee Nina Aversano of overseeing the misrepresentations of accounting and forecasting figures. Ms. Aversano was formerly head of North American sales for the telecom equipment maker. She had filed a whistleblower lawsuit alleging Lucent was behind questionable bookkeeping practices. After her questioning fiscal 2001 revenue forecasts, the company reduced 4th quarter revenue by first by $125 mil then by $554 mil. It also lowered 2001 1st quarter projections. Lucent's brief points out that an employee directly under Ms Aversano was fired for booking the $125 mil credit that was later reversed.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 2001
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Three ex-officers of Comparator get more penalties
Article Abstract:
New financial judgements have been imposed on three former executives of Comparator Systems Corp. The Securities and Exchange Commission (SEC) acquired the judgements. The SEC filed a lawsuit against Comparator for the defrauding of investors by padding assets on its balance sheet and also by ownership misrepresentation of certain technology. Comparator developed and marketed high-tech fingerprint-reading devices.
Comment:
New financial judgements imposed on three former executives of Comparator Systems Corp.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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