Computer-maker and technology company Gateway Inc. (Poway, CA, U.S.) has announced that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation of Gateway, enabling the company to focus fully on its transformation from a PC company to a branded integrator of personalized technology solutions.
The SEC and Gateway have reached a final agreement to settle the investigation in which Gateway neither admitted nor denied any wrongdoing, and the SEC assessed no penalty or fine against the company.
Gateway agreed to the entry of an administrative order prohibiting any future violations of U.S. securities laws.
The SEC's investigation focused principally on the company's accounting of various transactions in 2000. Gateway's board of directors replaced the company's top management in the first quarter of 2001 and authorized in
February 2001 and April 2003 the restatement of financials related to those transactions. Gateway announced late last year the resolution of related shareholder litigation.
In announcing its agreement to the resolution, the SEC acknowledged the remedial measures undertaken by Gateway's current management and board of directors, including substantial actions taken to enhance internal controls and corporate governance policies. No member of current management was ever a target of the SEC's investigation.
"We are very pleased to put this issue from our past behind us," said Gateway chairman and CEO Ted Waitt, who had relinquished his management role at the company in late 1999 and returned as CEO in early 2001, in a press release from the company. "We are a completely new Gateway, and bringing this issue to closure allows us to now focus completely on serving our customers."
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