NEW YORK-Lucent Technologies Inc. has informed the Securities and Exchange Commission that it intends to pay a $25 million penalty as a settlement, which also will prevent the company from making any financial restatements.
“The staff made it clear that the penalty is not based on any additional violations of law, but on what the staff considered Lucent’s lack of cooperation during the investigation and certain actions taken by the company subsequent to the agreement in principle,” said Lucent.
Rating agency Standard and Poor’s has said the action will not affect the company’s ratings.
The problem stems from a $125 million revenue recognition issue in 2000 for which the company has taken steps to correct.
