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Software Maker Is Target of SEC Probe

March 04, 2003|From Bloomberg News

Liberate Technologies Inc., a maker of software for television set-top boxes and related devices, said Monday that it was under investigation by the Securities and Exchange Commission.

In December, management of the San Carlos, Calif.-based company withdrew sales and profitability forecasts amid a probe of the company's accounting and a restatement of $10 million in revenue. The company's chief operating officer, Donald Fitzpatrick, was fired.

The SEC now has issued a formal order of investigation to determine whether the company violated federal securities laws or regulations, which allows it to subpoena individuals or groups, Liberate said. The company will "fully cooperate" with the SEC, it said in a statement.

Shares of Liberate fell 4 cents to $1.80 in over-the-counter Bulletin Board trading.

Liberate's stock was delisted from Nasdaq in January. The shares have risen 26% this year after plummeting 88% last year.

Liberate made the announcement in a news release. A company spokesman couldn't be reached for further comment.

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