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Report: Lucent Ex-Execs Could Face SEC Suits

Two former executives receive notices related to their role in revenue-recognition policies.
Author:

The

Securities and Exchange Commission

reportedly is weighing civil charges against two former

Lucent

(LU)

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executives over their role in the company's revenue-recognition policies, some of which the company has conceded to be improper.

Nina Aversano, former head of North American sales, and William Plunkett, former senior vice president of sales, were served with notices that indicate securities regulators are considering civil litigation against them, the

Wall Street Journal

reported.

According to the story, details are being sought on Aversano's role in Lucent's dealings with distributors, while Plunkett's notice relates to a credit offered to a wireless customer. Lucent settled an SEC probe of its accounting in February without having to pay a fine.

Specifically, the SEC has served the former executives with Wells notices, which allow them to respond to the allegations and potentially avoid formal charges.