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Reagan Lancaster, former executive vice president of software maker I2 Technologies Inc., will pay almost $1.3 million to settle a U.S. Securities and Exchange Commission lawsuit accusing him of overstating revenue.
I2, under the leadership of Lancaster and two other executives, misstated about $1 billion of software license revenue from 1997 to 2002, the SEC alleged in a July 2005 lawsuit filed in federal court in Dallas. I2 shouldn't have claimed about $125 million of that revenue, the regulator said.
Lancaster, 41, agreed March 23 to a judgment barring him from future violations of securities laws and ordering him to pay almost $1.2 million in disgorgement and a $120,000 fine, the SEC said today. The Dallas-based company, which writes software to manage business supply chains, agreed in June 2004 to pay $10 million to settle similar SEC allegations in a separate lawsuit.
``The allegations of the SEC had been vigorously disputed, but he wanted to and was willing to compromise in order to move forward with other personal and business interests,'' Lancaster's attorney, Mark Werbner, said in an interview. Lancaster didn't admit or deny the allegations, the SEC said.
Lancaster's co-defendants, former I2 President and Chief Executive Officer Gregory Brady and ex-Chief Financial Officer William Beecher, haven't settled, the SEC said.
The SEC is seeking court approval to distribute to investors the $10 million fine paid by I2. The money would be added to an $85 million settlement fund created as a result of a class-action lawsuit against I2.
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