Informix Receives SEC Sanctions; EY Involved
The Securities and Exchange Commission has hit Informix, a database software firm in Menlo Park, CA, with administrative sanctions related to fraud and the performance of previous company executives.
Between 1994 and 1997, the SEC discovered that Informix had falsly reported increased revenues of $295 million and earnings of $244 million during the three-year period.
Also involved in the case is Ernst & Young, who was the auditor at the time. Along with Informix, EY was ordered to pay about $142 million in 1999 based on lawsuits from the inflated figures.
EY has denied any wrongdoing and still maintains that position. The administrative sanctions will not result in any fine or other punishment against Informix. However, it will provide a sense of how severe the problem was when the former executives face trial.