In re Informix Corp.
Securities and Exchange Commission Exchange Act Release #34-42326
January 11, 2000
From 1994 through early 1997, employees of public company Informix (defendant) engaged in fraudulent accounting that overstated the company's reported revenues in SEC filings, without disclosing the underlying fraud; once new management discovered the practices, Informix restated its financials for the affected period in subsequent SEC filings. The SEC instituted an administrative enforcement action, and Informix filed an Offer of Settlement.
Is a public company required to maintain accurate books, records, and accounts, and to establish internal accounting controls, so the company can completely and accurately disclose its financial condition in public filings?