Wednesday, April 30, 2008

UTStarcom Settles with SEC

UTStarcom has reached final settlement with the Securities and Exchange Commission (the "SEC") regarding the previously-disclosed SEC investigation of the company's financial disclosures during prior reporting periods, historic option grant awards practices, certain historical sales contracts in China and other matters. Without admitting or denying the allegations in the SEC's complaint, UTStarcom said it has agreed to settle the charges by consenting to a permanent injunction against any future violations of the reporting, books-and-records and internal control provisions of the federal securities laws. No monetary penalties were assessed against the company.


Hong Lu, the Company's current Chief Executive Officer and a director of the Company, also agreed to settle with the SEC without admitting or denying the allegations in the SEC's complaint, by paying a civil penalty of $100,000 and consenting to a permanent injunction on similar terms as the company. Mr. Lu's settlement is subject to a final judgment by a United States District Court. http://www.utstar.com/

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