Supply chain management software vendor i2 Technologies Inc. announced Wednesday that it had reached a US$10 million settlement in a U.S. Securities and Exchange Commission (SEC) investigation into alleged violations of federal securities law.
The SEC has alleged that i2 improperly recognized software licensing revenues during its 1999 to 2002 fiscal years, a claim that i2 neither admits to nor denies in the settlement, said Melanie Ofenloch, an i2 spokeswoman.
The settlement comes one month after company shareholders were paid $85 million in a class action lawsuit settlement over similar allegations, she said.
The SEC launched its probe of the Dallas company in April 2003. Five months later, i2 restated financial results for the four years in question, a restatement that reduced the company's total reported revenue for the period by nearly $360 million.
The SEC's $10 million civil penalty will be distributed to i2 shareholders, although exactly who will receive the money has yet to be determined, Ofenloch said.