Veritas to pay $30m to settle accounting fraud case

Veritas Software has agreed to pay out $30m (£15m) to settle charges that it engaged in fraudulent accounting practices and aided internet service provider AOL in committing fraud.

Share

Veritas Software has agreed to pay out $30m (£15m) to settle charges that it engaged in fraudulent accounting practices and aided internet service provider AOL in committing fraud.

The software firm agreed to pay the money to the US Securities and Exchange Commission (SEC) "without admitting or denying the allegations", according to an SEC filing this week.

The allegations against the firm were contained in a complaint filed in the US courts.

The fine stems from an inquiry opened four years ago into a secret deal between Veritas and AOL. That deal involved the exchange of software licences and advertising, and raised each company's revenue by $20m (£10m). Both companies subsequently restated revenue numbers to erase the gains from the deal.

A spokesperson for Veritas, which was bought by Symantec in July 2005, confirmed the fine and said funds had already been set aside in reserve as part of the acquisition. Symantec itself was not named in the SEC complaint, she added.

Veritas is still embroiled in a battle with the US Internal Revenue Service, which claims the firm owes more than $757m (£378.5m) in back taxes and $303m (£151.5m) in penalties. Symantec is disputing the charges.

Find your next job with computerworld UK jobs