December 13, 2002 |
Several top executives of Enterasys Networks Inc. orchestrated phony deals and engaged in accounting trickery to inflate revenue, an expanded stockholders' lawsuit charges. Investors, led by the Los Angeles County Employees Retirement Assn., broadened their lawsuit this week to include a claim that several top Enterasys executives belonged to a "special teams unit" that met regularly to plan deceptive maneuvers. The suit said the information came from former employees whom it did not identify.
October 18, 2003 |
Enterasys Networks Inc. agreed to pay $50 million to settle a class-action lawsuit alleging that the company orchestrated phony deals and used accounting tricks to inflate revenue. William O'Brien, chief executive of the Andover, Mass., company, said the settlement was in the best interests of shareholders. Enterasys denied the accusations and admitted no wrongdoing as part of the settlement. The Los Angeles County Employees Retirement Assn.
February 28, 2002 |
Enterasys Networks Inc., under investigation by the U.S. Securities and Exchange Commission, fired three senior employees in its Asian unit because of accounting irregularities. The unidentified workers were fired for violating policies on when sales can be recorded, spokeswoman Kristen Sheppard said. Enterasys, the fourth-biggest maker of office computer network switches, has seen its shares fall 66% since it said this month that the Asian office improperly booked a $4-million order in August.
November 15, 2005 |
Enterasys Networks Inc., a maker of computer security products and network equipment, said Monday that it agreed to be bought out by two Southern California investment firms for $386 million. Shares of Andover, Mass.-based Enterasys surged nearly 25% on news of the company's acquisition by Gores Group of Los Angeles and Tennenbaum Capital Partners of Santa Monica, which plan to take the company private. Enterasys' board has approved an agreement granting shareholders $13.
March 6, 2002 |
The Securities and Exchange Commission, demoralized by budget constraints imposed by Congress and the Bush and Clinton administrations, says it will be unable to handle a record number of enforcement cases spawned by the collapse of Enron Corp. Armed with a new General Accounting Office study that backs the SEC's need for more resources, agency officials are taking their case to Congress this week. "We're stretched to the limit," SEC Enforcement Director Stephen Cutler said.
February 7, 2002 |
Investors' sudden obsession with accounting irregularities is likely to weigh on the stock market throughout 2002, raising the specter of a third consecutive down year on Wall Street for the first time since World War II. At the very least, market watchers say, accounting concerns fueled by the collapse of Enron Corp. could put a damper on any rally that might otherwise accompany an economic rebound.