Sycamore Faces Trimming
In an 8-K filing made by the company last week, Sycamore said it had received a "Wells Notice" from the Securities and Exchange Commission (SEC) indicating that the regulator was planning to bring legal action against the equipment vendor.
The planned civil suit follows an ongoing investigation related to Sycamore's apparent stock option backdating that took place under then-CFO Frances Jewels. (See More Rotten Bark From Sycamore.)
And while Sycamore has fessed up to the malfeasance, restated its earnings, and generally tried to make nice with regulators, apparently that's not enough for the SEC, which just likes to kick companies when they're down.
It makes one wonder whether previous CFO Richard Gaynor knew this was coming before jumping to Sonus Networks Inc. (Nasdaq: SONS), or if new CFO Paul Brauneis knew what he was getting into. (See Gaynor Lands at Sonus and Sycamore Has New CFO.)
– Ryan Lawler, Reporter, Light Reading