Nvidia announced today it has reached a tentative deal with the U.S. Secuities and Exchange Commission (SEC), related to the company's restatement of financial results.
The company came under scrutiny a year ago when it announced that it would have to restate results for the first three quarters of fiscal 2002 and for fiscal years 2001 and 2000. That triggered an SEC investigation, and afterwards the SEC issued Nvidia a "Wells notice" -- a document which typically informs the subject of an SEC investigation that the agency's enforcement staff will recommend a lawsuit against the company. It's a bad sign for a company -- it indicates that the SEC has enough evidence to pursue a case. According to the tentative deal struck with the SEC, Nvidia will not have to pay any fines or penalties, but must agree to a cease-and-desist order against any future violations of certain federal securities laws. Nvidia said the review of the agreement may take months to complete, and there is no guarantee that the SEC will approve the deal.
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