Dell Inc. announced a number of its former employees risk facing civil or administrative action linked to an ongoing regulatory investigation into the company’s accounting practices that began in 2001.
Employee identities were not disclosed in a filing with the Securities and Exchange Commission on Thursday, where Dell revealed that several of its past employees have been informed of the potential action.
An SEC inquiry from August 2005 questioning spotty revenue recognition and financial reporting prompted Dell to launch an internal investigation into its 2006 accounting reports. A year later, the company announced it would restate four years of financial reports after finding Dell employees has skewed results handed to auditors in order to meet performance targets. Earnings did not meet those stated on the reports.
The Texas based computer maker said it will continue to coordinate with the SEC on the possibility of a settlement that would include penalties.
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