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Veritas Software Settles With SEC

The Symantec unit will fork over $30 million.


(SYMC) - Get Symantec Corporation Report

Veritas Software unit has agreed to pay $30 million in fines to settle a civil fraud action brought against it by the

Securities and Exchange Commission


Veritas was seeking to settle allegations that it engaged in a fraudulent earnings management scheme and filed false and misleading financial statements from 2000 through 2003.

Veritas also was charged with securities fraud in connection with an improper round-trip transaction in 2000 with

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Shares of Symantec were down 42 cents, or 2.3%, to $17.43.

Symantec acquired Veritas for $13.5 billion in 2005.

According to the SEC, in the fourth quarter of 2000, Veritas allegedly artificially inflated reported revenue in connection with a $20 million transaction with AOL and smaller transactions with two other Internet companies.

During 2000 through 2002, Veritas also engaged in three improper accounting practices to manage its earnings and artificially smooth its financial results, the commission charged.

Veritas has not admitted or denied the allegations in the SEC's complaint. The SEC will seek to distribute the $30 million in penalties to harmed investors, the commission said.