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VMware Agrees to Settle With SEC Over Fraud Charges
VMware has agreed to a settlement with the Securities and Exchange Commission (SEC) over fraud charges.
According to the SEC, VMware pushed “revenue into future quarters by delaying product deliveries to customers, concealing the company’s slowing performance relative to its projections.”
The SEC found that VMware deferred tens of millions of dollars in orders to future quarters, delaying delivery of licenses until a quarter ended. As a result, the company was able to give the appearance that sales and demand were stronger than they actually were.
“As the SEC’s order finds, by making misleading statements about order management practices, VMware deprived investors of important information about its financial performance,” said Mark Cave, Associate Director in the Division of Enforcement. “Such conduct is incompatible with an issuer’s disclosure obligations under the federal securities laws.”
Despite the SEC’s findings, the agency only charged VMware an $8 million fine, a relative drop in the bucket compared to it the company’s revenue.
VMware Agrees to Settle With SEC Over Fraud Charges
Matt Milano
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