Murray Hill, New Jersey-based Lucent first highlighted the problem in November 1999 and had to slice $700m off its sales due to inaccurate bookings. It also promised to buy back $452m of equipment its distributors had not been able to sell. It immediately brought the issue to the attention of the SEC, although Lucent now says it it has neither admitted nor denied any wrong-doing.
However, the Wall Street Journal reported that the SEC investigation was far broader than Lucent had disclosed, and was investigating the integrity of its revenue as far back as the mid-1990s.
Source: Computerwire
