Bristol-Myers Settles With SEC
A federal judge has signed off on a $150 million payment that Bristol-Myers Squibb (BMY) agreed to make as part of a settlement of charges with the Securities and Exchange Commission.
It's the latest development in an Aug. 4 settlement between Bristol-Myers Squibb and the SEC concerning government investigations of accounting practices and inventory management activity that began two years ago.
The New York-based company agreed to settle a pending civil case by paying a total of $150 million, including the $100 million fine, into a shareholder compensation fund under court direction. The agreement with the SEC followed, by a few days, the company's agreement to pay $300 million to settle a shareholder class-action suit covering similar allegations.
The accounting issue involved a restatement Bristol-Myers announced more than a year ago. The company had overstated revenue between 1999 and 2001 by $2.5 billion in offering wholesalers incentives to build up their inventories -- a maneuver known as channel stuffing.Bristol-Myers neither admitted nor denied wrongdoing in connection with the investigation, which began in April 2002. The company said it cooperated fully with the SEC and has implemented a series of internal controls and procedures designed to ensure that its financial reporting processes meet the highest standards of integrity and professionalism.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV