The US Securities and Exchange Commission (SEC) has decided to take preliminary action against Lucent Technologies for alleged corrupt practices in China. Following revelations of potential violations of the US Foreign Corrupt Practices Act (which it reported to the SEC and the US Department of Justice), Lucent had dismissed four senior executives at its China operation in April 2004, including the president and COO. The investigations come on the eve of the company’s shareholders meeting, where investors will vote on the merger with Alcatel. Lucent is expecting a “Wells” notice, a common procedure where the SEC staff recommends an enforcement action to the commission.
