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STORAGE TECHNOLOGY SETTLES SECURITIES & EXCHANGE COMMISSION COMPLAINT

The US Securities & Exchange Commission has filed a settlement agreement with Storage Technology Corp in the US District Court for the District of Columbia, concluding the investigation of the company’s figures prior to its bankruptcy, when it was found to be recognising revenue at the time of product shipment rather than on payment or even installation with the customer. The settlement agreement concludes the SEC’s investigation of the company. StorageTek has entered into a consent decree with the SEC under which it neither admits nor denies any wrong-doing on the part of StorageTek in the early 1980s but says it won’t do it again anyway. All the material issues against the company apart from the Internal Revenue Service claims have now been settled. This year, StorageTek says it will finance its business out of cash flow, but says it is arranging a $50m standby facility in Denver.

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CBR Staff Writer

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