Veritas to pay $30 million for botched advertising deal
Veritas has agreed to pay $30 million in fines over its improper advertising deal with AOL in 2000. The Securities and Exchange Commission claimed that backup software giant and AOL wired money to each other simultaneously as payment for ads on AOL.
The SEC says that executives conspired to inflate the books and lie to auditors. The so-called "round trip" wire transfers appear to be payments that increase revenue, but no actual money is changing hands. The transfers helped the company beat analyst expectations for annual revenues in 2000.
AOL has already settled the case two years ago for $500 million dollars. Symantec purchased Veritas in 2005 and has not been named in the charges.