Veritas Software Corp.

Washington, DC: (Feb-21-07) Symantec Corp.'s Veritas was charged with engaging in a fraudulent scheme to manage earnings and aiding and abetting fraud at Time Warner Inc.'s America Online unit, according to the Securities and Exchange Commission. The SEC alleged that Veritas agreed to buy $20 million in online advertising from AOL in 2000 in exchange for an agreement that AOL would pay an additional $20 million to Veritas for software and services. The net effect was to inflate Veritas' 2000 fourth-quarter earnings by 2 cents a share. Veritas was also accused of lying to its independent auditors about the transaction. Veritas Software Corp. has agreed to pay a $30 million civil penalty to settle the suit with federal authorities. [MARKET WATCH: WERITAS SCHEME]

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