IBM Reports Receipt of SEC 'Wells Notice' Regarding Dollar General
1/8/2004 4:55:00 PM
ARMONK, N.Y., Jan 8, 2004 (BUSINESS WIRE) -- IBM today announced
that it has received a "Wells Notice" from the staff of the U.S.
Securities and Exchange Commission (SEC) in connection with the
SEC's investigation of a customer of IBM's Retail Stores Solutions
unit, which sells point-of-sale products. IBM disclosed the
existence of this investigation on June 2, 2003. The IBM customer
that is the subject of this investigation is Dollar General
Corporation. It is IBM's understanding that an IBM employee in its
Sales and Distribution unit has also received a Wells Notice from
the SEC in connection with this matter.
The Wells Notice notifies IBM that the SEC staff is considering
recommending that the SEC bring a civil action against IBM for
possible violations of the U.S. securities laws relating to Dollar
General's accounting for a specific transaction, by participating in
and aiding and abetting Dollar General's misstatement of its 2000
results. In that transaction, IBM paid Dollar General $11M for
certain used equipment as part of a sale of IBM replacement
equipment in Dollar General's 2000 fourth fiscal quarter.
Under the SEC's procedures, IBM has the opportunity to respond to
the SEC staff before the staff makes a formal recommendation
regarding whether any action should be brought against IBM by the
SEC.
IBM continues to cooperate fully with the investigation relating to
Dollar General and the separate SEC investigation relating to the
recognition of revenue by IBM in 2000 and 2001 primarily concerning
certain types of customer transactions, which is not the subject of
this Wells Notice.
SOURCE: IBM
IBM
Edward Barbini, 914/499-6565
barbini@u...