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Sarbanes-Oxley News & Developments
Nvidia reaches tenative deal with SECNvidia has reached a tenative deal with U.S. regulators who are planning to recommend enforcement actions against the chip designer.
> > The Santa Clara, Calif.-based company, whose accounting practices have been under investigation by the SEC since early 2002, said on Friday in a regulatory filing that it had received a -Wells notice- indicating that the agencys staff was going to advise the full commission to take enforcement action related to the probe.
Shares of Nvidia fell more than 4% in afternoon trading friday.
Nvidia said in an annual report filed with the SEC that it then reached a tentative deal with the agency this month.
The graphics chip leader said it would not have to pay any fines or penalties but must agree to a cease-and desist order against any future violations of certain federal securities laws.
Nvidia said the review of the agreement could take weeks or even months to complete and there is no guarantee the SEC would approve the deal.
In April 2002,Nvidia said that as a result of the investigation and its own internal review, it would restate results going back to its 2000 fiscal year to correct accounting errors.
After rising 317% in 2001 to be the best performing stock on the Standard & Poors 500 index, Nvidia shares lost nearly 83% of their value in 2002 because of the regulatory probe, a dispute with Microsoft over chip pricing, and inventory issues.
But the shares are up nearly 18% in 2003 after Nvidia settled the disput with Microsoft (its largest customer at 23% of revenue) and released out a series of new chips for the desktop and mobile markets.
Source: News.com article - dated April 25, 2003
Published:2003-04-29
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