Wednesday, February 21, 2007
The SEC filed a complaint in the U.S. District Court for the District of Columbia yesterday charging Veritas Software Corporation with securities fraud for engaging in an earnings management scheme and filing false and misleading financial statements from 2000 through 2003. Veritas was also charged with fraud in connection with improper round-trip transactions, including a round-trip transaction with America Online, Inc. (AOL), as well as aiding and abetting AOL's fraud. Veritas was acquired by Symantec Corporation on July 2, 2005.
Without admitting or denying the allegations in the complaint, Veritas consented to the entry of a judgment that enjoins the company from violating the antifraud, reporting, books and records, and internal control provisions of the federal securities laws, and from aiding and abetting securities fraud violations by other parties. Veritas was also ordered to pay a $30 million civil penalty, which the Commission will seek to distribute to harmed investors pursuant to the Fair Funds provision of the Sarbanes-Oxley Act of 2002. [SEC v. Veritas Software
Corp., Civil Action No. 07-364 (D.D.C.)] (LR-20008; AAE Rel. 2562)