i2 settles with the SEC
By siliconindia Bangalore Bureau   |   Thursday, 10 June 2004, 19:30 IST
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BANGALORE: i2 Technologies, Inc. (OTC: ITWO) has said that the Securities and Exchange Commission ( SEC) announced the settlement of enforcement proceedings against the Company. The settlement concerns the investigation conducted by the SEC into alleged violations of federal securities laws relating to the previously announced restatement of i2’s consolidated financial statements for the four years ended December 31, 2001 and the first three quarters of 2002. The restatement of the Company’s financial statements followed an internal inquiry into certain allegations of the Company’s revenue recognition practices and financial reporting for those periods. Without admitting or denying the Commission’s substantive findings against it, i2 settled the enforcement proceedings by consenting to a cease-and-desist order requiring future compliance with specific provisions of the Federal Securities laws, and agreed to pay a $10 million civil penalty. The entire penalty proceeds will be distributed to certain i2 shareholders. i2 established an accrual of $10 million relating to the possible settlement of the SEC complaint in the first quarter of 2004.

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