Informix Corp. has settled charges brought by securities regulators that it fraudulently inflated revenues and earnings between 1994 and 1997, the U.S. Securities and Exchange Commission said today.
In a case that was filed and settled today, the database software vendor is accused of "fraudulently and otherwise improperly" inflating revenues by $295 million and earnings by $244 million between 1994 and the first quarter of 1997, the SEC said in a statement.
Informix agreed to the settlement without admitting to or denying the SEC's findings, and the Commission's investigation continues, the SEC said.
Through former employees, Informix violated antifraud provisions of the federal securities laws, the SEC said, as well as the reporting, books and records, and internal control provisions of the Securities Exchange Act of 1934.
The Commission also found that Informix, through former employees, made materially false and misleading filings with the SEC between 1994 and 1997. The company's books and records during those periods were falsified, and Informix failed to employ a sufficient system of internal accounting controls, the SEC said.
As the alleged illegal conduct came to light, managers at the company acted fraudulently to avoid restating Informix's financial results, the SEC found.
After its former managers were replaced, Informix uncovered more than $100 million of accounting irregularities and restated its financial results, the SEC said.
The Commission ordered Informix to stop violating securities laws and cooperate with its continuing investigation.
The SEC's statement can be viewed on the Web at http://www.sec.gov/news/informix.htm/.
Informix, in Menlo Park, California, can be reached at +1-650-926-6300, or on the Web at http://www.informix.com/.