Lucent (LU) says it could face charges from securities regulators who are looking into two-year-old corruption charges in the company's China unit.
The Murray Hill, N.J., telecom equipment maker was notified by the
Securities and Exchange Commission
that it will soon receive a so-called Wells notice. The notice indicates that the agency is considering civil action and gives the company a chance to respond.
In 2004, Lucent
fired four high-ranking employees in China as part of sweeping corruption investigation into its overseas operations. Lucent said it removed its president, its COO, a marketing executive and a finance manager from its China unit for "control deficiencies" uncovered during a compliance review related to the Foreign Corrupt Practices Act.
That same year, the both the SEC and the
opened investigations into alleged corruption in Lucent's Saudi Arabia offices from 1997 to 2000.
Lucent said Wednesday it is cooperating with those agencies and that Lucent believes that these incidents and deficiencies did not have a material effect on its results of operations.
Lucent shares dropped 4 cents to $2.23 in after-hours trading Wednesday.