SEC Announces McAfee Fraud Payout
SANTA CLARA, Calif. (
) -- The
Securities and Exchange Commission
has announced that around $67 million will be distributed to investors following
McAfee's
(MFE)
2006 financial fraud settlement.
The security software specialist, which was formerly known as Network Associates, agreed to pay $50 million in penalties to settle SEC charges that it defrauded investors by overstating revenue and earnings. A "fair fund" for distributing the money was subsequently created, and officials say that more than 16,000 McAfee investors harmed by the fraud are in line for a payout.
Proceeds from three other settlements related to the McAfee fraud have also been added to the Fair Fund, bringing its total value to around $67 million.
McAfee CEO Dave DeWalt,
who joined the company almost three years ago
, has worked hard to draw a line under McAfee's former accounting problems, transforming the software maker into one of the security sector's
.
Repeatedly highlighted as an
for investors, McAfee was one of
TheStreet's
top tech picks for 2009
.
Seen as one of the
stocks, McAfee has been
at rival
Symantec's
(SYMC) - Get Report
market share.
McAfee comfortably beat analysts' sales estimate in its
and gave bullish guidance for the current quarter.
The company's shares dipped 26 cents, or 0.65%, to $39.98 on Monday, as the
Nasdaq
slipped 0.05%.
-- Reported by James Rogers in New York
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