Scientific-Atlanta Inc.

The U.S. Securities and Exchange Commission (SEC) alleged that in 2000, Scientific-Atlanta (now Cisco Systems Inc.) entered into a marketing agreement with Adelphia, which then misused Scientific-Atlanta to inflate its earnings by about $43 million. Adelphia then asked Scientific-Atlanta to increase the price of digital cable boxes as part of a plan that allowed Adelphia to artificially reduce its marketing expenses and increase earnings. SEC states that Scientific-Atlanta knew Adelphia was misusing the marketing support agreement. Scientific-Atlanta reached an agreement to pay $20 million to settle the charges that it aided and abetted reporting violations by Adelphia Communications Corp. (Jun-22-06) [REUTERS]

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