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Verdict reversed for two Gateway execs

May 31, 2007|From Times Wire Reports

Gateway Inc.'s ex-finance chief and ex-controller won a partial court victory Wednesday against the Securities and Exchange Commission when a judge reversed a jury verdict and ruled they weren't liable for fraud.

U.S. District Court Judge Roger Benitez said the jury was wrong to find ex-finance chief John Todd and former controller Robert Manza liable for fraud because the SEC provided too little evidence to support its case. The executives remain liable for aiding and abetting false financial reports, he said.

The SEC claimed the men used improper transactions to close the gap between the company's expected revenue and analysts' estimates.

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