infoGroup Agrees Initial Settlement with SEC

ORC parent and database giant infoGroup has reached a provisional settlement to resolve a two-year investigation into its accounting practices by a regional branch of the Securities and Exchange Commission (SEC).

In a statement, the firm said it would not admit or deny any liability, but instead agreed to comply with a 'cease and desist' order that requires that a system of internal accounting controls is maintained in compliance with the securities laws. The proposed agreement does not require infoGroup to pay a financial penalty.

The company first announced the investigation on November 20, 2007, following a shareholder lawsuit which claimed that former Chairman and CEO Vin Gupta had misspent millions of corporate dollars on personal travel and entertainment.

In response to the litigation and SEC investigation, the firm set up a Special Committee which introduced a new policy to limit directors' use of company funds. While Gupta received a $10m severance package, he also agreed to repay the $9m costs to settle the legal action.

CEO Bill Fairfield commented on the SEC finding: 'We are pleased that this matter is on its way to resolution and that the Denver Regional Office of the SEC appears to have recognized the high level of our cooperation and the numerous remedial measures which our new Board of Directors and management have put into place.'

Web site: www.infogroup.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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